Financial Data and Key Metrics Changes - Company-wide revenues before reimbursable expenses (RVR) grew 17% in Q3 2025, including 10% organic growth, reflecting strong demand and execution [3][19] - RVR for Q3 2025 was a record $432.4 million, up 16.8% from $370 million in Q3 2024 [19] - Net income for Q3 2025 was $30.4 million or $1.71 per diluted share, compared to $27.1 million or $1.47 per diluted share in Q3 2024 [20] - Adjusted EBITDA was $67.4 million in Q3 2025, or 15.6% of RVR, compared to $54.9 million or 14.8% of RVR in Q3 2024 [21] Business Line Data and Key Metrics Changes - Healthcare segment RVR grew 20% year-over-year, achieving a record $219.5 million in Q3 2025 [4][23] - Education segment RVR grew 7% year-over-year, reaching $129.4 million in Q3 2025 [9][25] - Commercial segment RVR grew 27% year-over-year, reaching $83.4 million in Q3 2025 [12][26] Market Data and Key Metrics Changes - The healthcare segment generated 51% of total company RVR in Q3 2025, with an organic growth rate of 18.6% [23][24] - The education segment accounted for 30% of total company RVR, with strong demand for strategy and operations, research, and digital offerings [10][25] - The commercial segment generated 19% of total company RVR, with growth driven by acquisitions and organic growth in digital business [12][26] Company Strategy and Development Direction - The company aims to leverage AI and automation across its offerings to drive value creation and efficiency [7][8] - Continued focus on integrating commercial offerings to enhance go-to-market strategy and drive above-average growth [15][16] - The company expects to achieve full-year 2025 RVR guidance of $1.65 billion to $1.67 billion, affirming adjusted EBITDA guidance of 14% to 14.5% of RVR [17][31] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across core end markets, positioning the company well for continued growth in 2026 [4][17] - The healthcare segment is experiencing persistent margin pressures, leading clients to seek comprehensive solutions [6][36] - Management expressed confidence in the ability to sustain accelerated RVR growth and margin expansion despite macroeconomic challenges [17][30] Other Important Information - The company completed several acquisitions, including Eclipse Insights, Treliant, and Wilson Perumal & Company, which contributed to revenue growth [19][12] - The effective income tax rate for Q3 2025 was 28.7%, with expectations for a full-year rate of 23% to 25% [21][30] - Free cash flow for Q3 2025 was $85.3 million, with full-year expectations in the range of $165 million to $185 million [28][30] Q&A Session Summary Question: Insights on performance improvement in healthcare - Management highlighted strong market demand driven by margin pressures and the need for transformation, with a record pipeline and larger project scopes [33][34][39] Question: Outlook for 2026 - Management indicated confidence in continued demand and execution, aligning with previously discussed multi-year targets [42][43] Question: Demand in commercial segment - Management noted an inflection point in demand for strategy and financial advisory services, with improved sales conversion [44][45] Question: Hiring capabilities - Management expressed confidence in hiring capabilities, citing a strong culture that attracts talent and leads to lower attrition rates [47][48] Question: Customer decision-making in education - Management observed a stable outlook in education, with clients making long-term decisions amidst previous disruptions [49] Question: Utilization rates and project absorption - Management confirmed high utilization rates in managed services, with a tight correlation between sales and hiring [50][51] Question: AI focus in projects - Management reported that approximately 15% to 20% of total revenue is related to AI projects, with expectations for growth in this area [60][61]

Growth and Acquisitions - Huron Consulting Group reported strong growth in healthcare and education sectors, aiming to broaden its portfolio to meet evolving market needs[163]. - The company has enhanced its consulting offerings through acquisitions, including Eclipse Insights for revenue cycle solutions in June 2025[166]. - Huron's education segment has been bolstered by acquisitions such as Grenzebach Glier and Associates in March 2024, enhancing its global philanthropy consulting services[167]. - The commercial segment has seen growth through acquisitions like AXIA Consulting in December 2024, expanding its supply chain management offerings[168]. - The acquisition of Treliant added approximately 180 revenue-generating professionals to the Commercial segment in Q3 2025[213]. - Incremental revenues before reimbursable expenses from acquisitions since Q3 2024 amounted to $28.3 million[201]. Financial Performance - Revenues before reimbursable expenses increased by $62.3 million, or 16.8%, to $432.4 million for Q3 2025 from $370.0 million for Q3 2024[201]. - Total revenues for the company reached $441.3 million in Q3 2025, compared to $378.1 million in Q3 2024, representing a 16.7% increase[210]. - Net income increased by $3.3 million, or 12.0%, to $30.4 million for Q3 2025 from $27.1 million in Q3 2024, with diluted earnings per share rising to $1.71 from $1.47[234]. - Adjusted EBITDA increased by $12.6 million, or 22.9%, to $67.4 million, or 15.6% of revenues before reimbursable expenses for Q3 2025 compared to 14.8% for Q3 2024[207]. - Adjusted net income increased by $6.3 million, or 20.3%, to $37.4 million in Q3 2025, with adjusted diluted earnings per share increasing to $2.10 from $1.68[238]. Segment Performance - Healthcare segment revenues before reimbursable expenses increased to $219.5 million in Q3 2025 from $183.1 million in Q3 2024, a growth of 19.9%[210]. - Education segment revenues before reimbursable expenses rose to $129.4 million in Q3 2025, compared to $121.0 million in Q3 2024, reflecting a 6.9% increase[210]. - Commercial segment revenues before reimbursable expenses grew to $83.4 million in Q3 2025, up from $65.9 million in Q3 2024, marking a 26.5% increase[210]. - Healthcare operating income increased by $18.1 million, or 36.5%, with an operating margin of 30.9%[227]. - Education operating income rose by $4.1 million, or 14.0%, with an operating margin of 25.7%[227]. - Commercial operating income decreased by $2.5 million, or 15.4%, with an operating margin of 16.4%[228]. Operational Efficiency - Huron's operational efficiency initiatives aim for margin expansion and strong annual adjusted diluted earnings per share growth[164]. - The utilization rate within the Consulting capability increased to 73.7% in Q3 2025, compared to 73.6% in Q3 2024[202]. - The total number of revenue-generating professionals increased by 15.2% to 5,244 as of September 30, 2025, compared to 4,551 as of September 30, 2024[204]. - The number of Managed Services professionals increased by 55.5% to 2,091 as of September 30, 2025, from 1,345 as of September 30, 2024[204]. Cash Flow and Capital Management - The company maintains a strong balance sheet and cash flow, committed to strategic capital deployment and shareholder returns[164]. - Returned $152.5 million to shareholders in the first nine months of 2025 by repurchasing 1,084,794 shares of common stock[208]. - Cash and cash equivalents increased to $23.9 million as of September 30, 2025, compared to $21.9 million at the end of 2024[263]. - Net cash provided by operating activities increased by $5.3 million to $67.0 million for the nine months ended September 30, 2025, from $61.7 million in 2024[267]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $133.2 million, primarily for business purchases ($107.2 million) and software development ($15.4 million)[270]. Risks and Challenges - The company faces risks related to client retention, market volatility, and integration of acquired businesses, which could impact future performance[161]. - The company has exposure to interest rate risks, with a hypothetical 100 basis point change in interest rates potentially affecting pretax income by $3.6 million annually[297]. - The company does not use derivative instruments for trading or speculative purposes, minimizing market risk exposure[306]. Investments and Impairments - The fair value of the investment in Shorelight Holdings, LLC decreased to $32.8 million as of September 30, 2025, from $62.3 million at December 31, 2024, reflecting a non-cash credit-related impairment charge of $11.1 million[303]. - The equity investment in the hospital-at-home company had a carrying value of $2.4 million as of September 30, 2025, down from $7.4 million at December 31, 2024, after recognizing a total non-cash impairment charge of $5.0 million[304]. - The total cost basis of the investment in Shorelight Holdings, LLC is $40.9 million, indicating a fair value decline of approximately 47.3% over the nine months of 2025[303].

Financial Performance - Revenues before reimbursable expenses increased $62.3 million, or 16.8%, to a record $432.4 million in Q3 2025 from $370.0 million in Q3 2024[3] - Net income increased $3.3 million, or 12.0%, to $30.4 million in Q3 2025, compared to $27.1 million in Q3 2024[3] - Adjusted EBITDA increased $12.6 million, or 22.9%, to $67.4 million in Q3 2025 from $54.9 million in Q3 2024[3] - Diluted earnings per share increased $0.24, or 16.3%, to $1.71 in Q3 2025, compared to $1.47 in Q3 2024[3] - Revenues before reimbursable expenses increased $132.9 million, or 12.1%, to $1.23 billion for the first nine months of 2025 from $1.10 billion for the same prior year period[12] - Adjusted diluted earnings per share increased $1.10, or 24.1%, to $5.67 for the first nine months of 2025 from $4.57 for the same prior year period[15] - Total revenues for the nine months ended September 30, 2025, reached $1,257,180,000, compared to $1,122,491,000 for the same period in 2024, reflecting a 12.0% growth[24] - Net income for the nine months ended September 30, 2025, was $74.386 million, a decrease of 10.2% from $82.637 million in 2024[28] - Adjusted net income for the first nine months of 2025 was $102.1 million, a 19.8% increase from $85.3 million in the same period of 2024[36] Shareholder Returns - Huron returned $152.5 million to shareholders by repurchasing 1.1 million shares of common stock for the first nine months of 2025[12] - The company repurchased shares amounting to $153.097 million during the nine months ended September 30, 2025[28] Operational Metrics - The number of revenue-generating professionals increased 15.2% to 5,244 as of September 30, 2025, from 4,551 as of September 30, 2024[11] - Total assets as of September 30, 2025, were $1,544,182,000, an increase from $1,343,617,000 at the end of 2024, indicating a growth of 14.9%[26] - Current liabilities decreased to $330,054,000 from $338,820,000, a reduction of 2.1%[26] - Long-term debt increased to $589,591,000 as of September 30, 2025, compared to $342,857,000 at the end of 2024, reflecting a significant rise of 72.2%[26] - The company anticipates adjusted EBITDA as a percentage of revenues before reimbursable expenses in a range of 14.0% to 14.5% for 2025[17] - The company anticipates continued growth in adjusted EBITDA as a percentage of revenues, although specific guidance for reconciling items was not provided[20] Segment Performance - Healthcare segment revenues before reimbursable expenses for the three months ended September 30, 2025, rose by 19.9% to $219.541 million compared to $183.136 million in 2024[30] - Operating income for the Healthcare segment for the nine months ended September 30, 2025, increased by 24.5% to $183.724 million from $147.591 million in 2024[30] - The number of revenue-generating professionals in the Healthcare segment increased by 17.1% to 1,428 as of September 30, 2025, from 1,219 in 2024[30] - Managed Services capability revenues before reimbursable expenses in the Healthcare segment for the nine months ended September 30, 2025, were $64.3 million, up from $53.5 million in 2024[32] - The Commercial segment's revenues before reimbursable expenses for the three months ended September 30, 2025, increased by 26.6% to $83.396 million compared to $65.865 million in 2024[30] Cash Flow and Liquidity - Total cash provided by operating activities for the nine months ended September 30, 2025, was $66.987 million, an increase from $61.704 million in 2024[28] - Cash and cash equivalents at the end of the period increased to $23.889 million from $18.497 million in 2024[28] Management Insights - Management emphasizes the importance of non-GAAP measures for understanding operational performance and future prospects[19] - The company is focused on optimizing operations and accelerating digital transformation to enhance client services and drive sustainable results[21] Other Financial Information - The company incurred $3.5 million in restructuring charges in Q3 2025, slightly up from $3.1 million in Q3 2024[36] - Unrealized losses on long-term investments amounted to $16.1 million for the first nine months of 2025, impacting the financial results[37] - The company reported a net income as a percentage of total revenues of 6.9% in Q3 2025, down from 7.2% in Q3 2024[34]

Core Viewpoint - Huron, a global professional services firm, will announce its financial results for Q3 2025 on October 28, 2025, after market close [1]. Group 1 - The financial results announcement will be followed by a conference call hosted by CEO C. Mark Hussey and CFO John D. Kelly on the same day at 5:00 p.m. Eastern Time [1]. - The conference call will be accessible via webcast on Huron's website, with a replay available approximately two hours after the conclusion and for 90 days thereafter [2]. Group 2 - Huron focuses on creating sound strategies, optimizing operations, and accelerating digital transformation for its clients, aiming to empower businesses and their people [3]. - The firm emphasizes embracing diverse perspectives and challenging the status quo to achieve sustainable results for the organizations it serves [3].

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

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]