Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Huron Consulting (HURN) - Huron Consulting currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - HURN shares have increased by 9.86% over the past week, outperforming the Zacks Consulting Services industry, which rose by 1.97% [5] - Over the last quarter, HURN shares rose by 17.05%, and over the past year, they have surged by 71.84%, while the S&P 500 experienced declines of -5.82% and gains of 9.94%, respectively [6] - The average 20-day trading volume for HURN is 236,109 shares, indicating a bullish trend when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for HURN have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $7.15 to $7.39 [9] - For the next fiscal year, three estimates have also moved higher, reflecting positive sentiment regarding the company's earnings potential [9] Conclusion - Given the strong performance metrics and positive earnings outlook, HURN is identified as a solid momentum pick and is recommended for consideration in the near term [11]

Financial Data and Key Metrics Changes - Revenues before reimbursable expenses (RBR) grew 11% year-over-year to $395.7 million in Q1 2025 from $356 million in Q1 2024 [18] - Net income increased 36.3% to $24.5 million, or $1.33 per diluted share, compared to $18 million, or $0.95 per diluted share in the prior year [18] - Adjusted EBITDA was $41.5 million, representing 10.5% of RBR, compared to $33.8 million, or 9.5% of RBR in Q1 2024 [19] Business Line Data and Key Metrics Changes - Healthcare segment RBR grew 10% year-over-year to $198.5 million, driven by strong demand for performance improvement financial advisory offerings [5][20] - Education segment RBR increased 10% to $122.7 million, supported by demand for strategy and operations advancement offerings [21] - Commercial segment RBR surged 17% to $74.5 million, primarily due to the acquisition of Axia and strong demand for digital offerings [12][23] Market Data and Key Metrics Changes - The healthcare segment accounted for 50% of total company RBR in Q1 2025, while the education segment contributed 31% and the commercial segment 19% [20][21][24] - Days Sales Outstanding (DSO) improved to 79 days in Q1 2025 from 91 days in Q1 2024, reflecting better collections on larger projects [26] Company Strategy and Development Direction - The company reaffirmed its annual guidance, indicating confidence in its growth strategy and ability to navigate a complex regulatory landscape [5][14] - The focus remains on expanding digital capabilities and enhancing advisory services through both organic growth and acquisitions [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance despite a dynamic external environment, highlighting strong client relationships and industry expertise [4][5] - The healthcare sector is expected to face ongoing financial pressures, prompting clients to seek performance improvement solutions [6][7] Other Important Information - The company divested its student education business at the end of 2024, which is reflected in the current financial results [16] - Cash flow used in operations was $106.8 million in Q1 2025, down from $130.7 million in Q1 2024, primarily due to annual incentive payments [26] Q&A Session Summary Question: Outlook for the commercial segment and any changes in growth expectations - Management noted no changes to segment-level guidance, with record sales conversion driven by the digital business [30][34] Question: Headcount growth and its alignment with revenue - Management expects headcount growth to align with revenue, particularly in the healthcare business, where demand remains strong [36][37] Question: New business and billings trends in education and healthcare - Management reported no notable changes in new business or billings, with strong sales conversion in Q1 [40][42] Question: Impact of policy changes on private universities - Management confirmed ongoing relationships with private universities, with no dramatic effects from recent policy changes [44] Question: Trends in performance improvement project assessments - Assessment activity remains robust, driven by clients facing financial strain and escalating costs [46][48]

Core Insights - Huron Consulting (HURN) reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.16 per share, and up from $1.23 per share a year ago, representing an earnings surprise of 44.83% [1] - The company achieved revenues of $395.69 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.79% and increasing from $355.96 million year-over-year [2] - Huron Consulting has consistently outperformed consensus EPS estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was 25%, with actual earnings of $1.90 per share compared to an expected $1.52 per share [1] - The current consensus EPS estimate for the upcoming quarter is $1.84, with projected revenues of $402.37 million, and for the current fiscal year, the estimate is $7.15 on $1.62 billion in revenues [7] Stock Performance - Huron Consulting shares have increased by approximately 8.9% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Industry Outlook - The Consulting Services industry is ranked in the top 10% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [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 11% year-over-year to $395.7 million in Q1 2025 from $356 million in Q1 2024 [17] - Net income increased 36.3% to $24.5 million, or $1.33 per diluted share, compared to $18 million, or $0.95 per diluted share in the prior year [17] - Adjusted EBITDA was $41.5 million, representing 10.5% of RBR, compared to $33.8 million, or 9.5% of RBR in Q1 2024 [18] - Adjusted net income rose to $31.1 million, or $1.68 per diluted share, reflecting a 36.6% increase over the previous year [18] Business Line Data and Key Metrics Changes - Healthcare segment RBR grew 10% year-over-year to $198.5 million, accounting for 50% of total company RBR [19] - Education segment RBR increased 10% to $122.7 million, representing 31% of total company RBR [20] - Commercial segment RBR surged 17% to $74.5 million, driven by the acquisition of Axia and strong demand for digital offerings [22] Market Data and Key Metrics Changes - The healthcare segment continues to face financial pressures, with operating expenses outpacing reimbursements, leading to a focus on performance improvement offerings [6][8] - Education clients are navigating regulatory changes, with varying impacts based on institutional characteristics, leading to increased demand for advisory services [10][11] - Commercial clients are also experiencing pressures from a volatile macroeconomic environment, prompting them to seek Huron's expertise in navigating these challenges [12][13] Company Strategy and Development Direction - The company reaffirmed its annual guidance, indicating confidence in its growth strategy and ability to navigate external challenges [5][14] - Huron is focusing on expanding its digital capabilities and enhancing its advisory services across all segments to meet evolving client needs [12][13] - The company aims to maintain a balance between pro-cyclical and counter-cyclical offerings to ensure resilience in its business model [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance despite a dynamic external environment, highlighting strong client relationships and industry expertise [4][5] - The company anticipates continued demand for its services as clients face increasing financial pressures and regulatory changes [6][8] - Management noted that the pipeline for commercial segment remains strong, with record levels of sales conversion in Q1 2025 [29] Other Important Information - The company divested its student education business at the end of 2024, which is reflected in the current financial results [15] - Cash flow used in operations was $106.8 million in Q1 2025, reflecting annual incentive payments, with a negative free cash flow of $115.4 million [24] - Total debt as of March 31, 2025, was $576.3 million, with a net debt of $552.9 million, reflecting an increase due to annual cash bonuses and share repurchases [25] Q&A Session Summary Question: Outlook for the commercial segment and any changes in growth expectations - Management confirmed no changes to segment-level guidance, noting record sales conversion driven by digital business [29][30] Question: Headcount growth and its alignment with revenue - Management expects headcount growth to align with revenue, particularly in the healthcare business, while utilization rates improved significantly in Q1 [35][36] Question: New business and billings trends in education and healthcare - Management reported no notable changes in new business or billings, with a normal operating environment observed [39][41] Question: Impact of policy changes on private universities - Management indicated ongoing relationships with private universities, with no dramatic effects from recent policy changes [43] Question: Trends in assessment activity for performance improvement projects - Management noted robust assessment activity driven by financial strain among clients, with no significant shift in fee structures [45][46] Question: Changes in project size and duration - Management observed an increase in average project size and complexity, reflecting client challenges and the integration of various capabilities [47][48]

[PART I – FINANCIAL INFORMATION](index=4&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Item 1. Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) Huron's unaudited Q1 2025 and 2024 consolidated financial statements, including core statements and detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | **Assets** | | | | Total current assets | $439,974 | $409,117 | | Total assets | $1,363,566 | $1,343,617 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $211,493 | $338,820 | | Total non-current liabilities | $657,789 | $443,470 | | Total stockholders' equity | $494,284 | $561,327 | | Total liabilities and stockholders' equity | $1,363,566 | $1,343,617 | - Total assets increased by **$19.9 million** from December 31, 2024, to March 31, 2025, primarily driven by increases in receivables from clients and unbilled services[8](index=8&type=chunk) - Total current liabilities decreased significantly by **$127.3 million**, mainly due to a large reduction in accrued payroll and related benefits[8](index=8&type=chunk) [Consolidated Statements of Operations and Other Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Other%20Comprehensive%20Income) Consolidated Statements of Operations and Other Comprehensive Income (Loss) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Change (YoY) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :----------- | | Revenues before reimbursable expenses | $395,690 | $355,961 | +11.2% | | Total revenues | $404,141 | $363,385 | +11.2% | | Operating income | $32,732 | $19,921 | +64.3% | | Income before taxes | $21,452 | $17,560 | +22.2% | | Net income | $24,536 | $18,006 | +36.3% | | Net income per basic share | $1.38 | $0.99 | +39.4% | | Net income per diluted share | $1.33 | $0.95 | +40.0% | | Comprehensive income | $12,321 | $16,910 | -27.1% | - Operating income saw a substantial increase of **64.3%** year-over-year, indicating improved operational efficiency[10](index=10&type=chunk) - Comprehensive income decreased by **27.1%** primarily due to a significant unrealized loss on investment and unrealized loss on cash flow hedging instruments in 2025[10](index=10&type=chunk) [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Consolidated Statements of Stockholders' Equity | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Stockholders' Equity | $494,284 | $561,327 | | Retained Earnings | $556,189 | $531,653 | | Treasury Stock, at cost | $(189,279) | $(160,093) | | Accumulated Other Comprehensive Income (Loss) | $(329) | $11,886 | - Total stockholders' equity decreased by **$67.0 million**, primarily driven by share repurchases and a significant decrease in accumulated other comprehensive income (loss)[12](index=12&type=chunk) - The company repurchased **508,611 shares** for **$72.9 million** during the three months ended March 31, 2025[12](index=12&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash used in operating activities | $(106,827) | $(130,724) | | Net cash used in investing activities | $(15,287) | $(30,599) | | Net cash provided by financing activities | $123,562 | $167,859 | | Net increase in cash and cash equivalents | $1,467 | $6,493 | | Cash and cash equivalents at end of period | $23,378 | $18,642 | - Net cash used in operating activities decreased by **$23.9 million**, primarily due to increased cash collections, partially offset by higher payments for salaries and annual performance bonuses[15](index=15&type=chunk) - Net cash used in investing activities decreased by **$15.3 million**, mainly due to lower spending on business acquisitions and internally developed software[15](index=15&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes to Huron's consolidated financial statements, covering business, accounting policies, assets, revenues, and financing [1. Description of Business](index=8&type=section&id=1.%20Description%20of%20Business) - Huron is a global professional services firm focused on strategy, operations optimization, digital transformation, and empowering businesses[17](index=17&type=chunk) - The company operates under three segments: Healthcare, Education, and Commercial, and reports revenue across two capabilities: Consulting and Managed Services, and Digital[18](index=18&type=chunk) [2. Basis of Presentation and Significant Accounting Policies](index=8&type=section&id=2.%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) - The unaudited consolidated financial statements are prepared in accordance with SEC rules for Form 10-Q and GAAP, reflecting all normal, recurring adjustments[20](index=20&type=chunk) - In Q2 2024, the company revised its consolidated statement of operations to separately present other losses (gains), net, which had no effect on consolidated results[21](index=21&type=chunk) [3. New Accounting Pronouncements](index=8&type=section&id=3.%20New%20Accounting%20Pronouncements) - ASU **2023-09** (Improvements to Income Tax Disclosures) will be effective for annual periods beginning December **31**, **2025**, requiring specific categories in rate reconciliation and disaggregation of income taxes paid by jurisdiction, with no expected impact on financial position or operations, only additional disclosures[22](index=22&type=chunk) - ASU **2024-03** (Disaggregation of Income Statement Expenses) will be effective for annual periods beginning December **31**, **2027**, enhancing transparency of expense nature and function, with no expected impact on financial position or operations, only additional disclosures[23](index=23&type=chunk) [4. Goodwill and Intangible Assets](index=9&type=section&id=4.%20Goodwill%20and%20Intangible%20Assets) Goodwill, net by Segment (in thousands) | Segment | December 31, 2024 | March 31, 2025 | | :-------- | :---------------- | :------------- | | Healthcare | $453,528 | $453,528 | | Education | $144,564 | $150,730 | | Commercial | $80,651 | $80,651 | | Total | $678,743 | $684,909 | - Goodwill increased by **$6.1 million** in the Education segment due to the acquisitions of Advancement Resources and Halpin in March **2025**[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) Intangible Assets (in thousands) | Intangible Asset | Gross Carrying Amount (March 31, 2025) | Accumulated Amortization (March 31, 2025) | Gross Carrying Amount (December 31, 2024) | Accumulated Amortization (December 31, 2024) | | :--------------------- | :------------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------------------------- | | Customer relationships | $33,694 | $10,953 | $30,683 | $9,790 | | Technology and software | $16,230 | $13,267 | $16,230 | $12,771 | | Trade names | $6,000 | $6,000 | $6,000 | $6,000 | | Customer contracts | $1,664 | $697 | $1,483 | $418 | | Non-competition agreements | $1,380 | $701 | $1,260 | $601 | | Total | $58,968

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Huron achieved strong Q1 2025 financial growth, with significant increases across key metrics including revenue, net income, adjusted EBITDA, and diluted EPS Key Financial Metrics for Q1 2025 | Metric | Q1 2025 | Q1 2024 | Year-over-Year Growth | | :----------------------------------- | :--------------- | :--------------- | :-------------------- | | Revenue, net of reimbursable expenses | $395.7 million | $356.0 million | 11.2% | | Net Income | $24.5 million | $18.0 million | 36.3% | | Adjusted EBITDA | $41.5 million | $33.8 million | 22.7% | | Diluted Earnings Per Share | $1.33 | $0.95 | 40.0% | | Adjusted Diluted Earnings Per Share | $1.68 | $1.23 | 36.6% | - CEO and President Mark Hussey stated that revenue growth was driven by strong performance across all three operating segments, coupled with continued margin expansion[2](index=2&type=chunk) [Other Highlights](index=1&type=section&id=Other%20Highlights) Huron returned capital to shareholders, reaffirmed full-year guidance, received 'Great Place To Work' certifications, and unveiled a new growth strategy in Q1 2025 - Huron returned **$72.9 million** to shareholders in Q1 2025 by repurchasing **0.5 million** shares of common stock, representing **2.9%** of the company's outstanding common stock as of December 31, 2024[4](index=4&type=chunk) - The company reaffirmed its full-year 2025 guidance, projecting revenue, net of reimbursable expenses, between **$1.58 billion** and **$1.66 billion**[4](index=4&type=chunk) - Huron recently achieved Great Place To Work® certification in the U.S., Canada, India, Singapore, and the U.K[4](index=4&type=chunk) - The company published its Investor Day presentation on its investor relations website, outlining updated growth strategies and financial targets through 2029[4](index=4&type=chunk) [First Quarter 2025 Financial Results](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Huron's Q1 2025 revenue, net of reimbursable expenses, grew 11.2% to $395.7 million, driven by strong demand and an acquisition, boosting net income and adjusted profitability - Revenue, net of reimbursable expenses, increased by **11.2%** to **$395.7 million**, primarily driven by strong demand for consulting and managed services in the healthcare and education segments, and increased demand for digital capabilities in the commercial and education segments, including **$11.9 million** in incremental revenue from the AXIA Consulting acquisition[5](index=5&type=chunk) Q1 2025 Profitability Metrics | Metric | Q1 2025 | Q1 2024 | Year-over-Year Growth | | :--------------------------------------------------- | :--------------- | :--------------- | :-------------------- | | Net Income | $24.5 million | $18.0 million | 36.3% | | Net Income as a % of Total Revenue | 6.1% | 5.0% | 1.1 percentage points | | Diluted Earnings Per Share | $1.33 | $0.95 | 40.0% | | EBITDA | $34.2 million | $28.9 million | 18.6% | | Adjusted EBITDA | $41.5 million | $33.8 million | 22.7% | | Adjusted EBITDA as a % of Revenue, net of reimbursable expenses | 10.5% | 9.5% | 1.0 percentage point | | Adjusted Net Income | $31.1 million | $23.3 million | 33.8% | | Adjusted Diluted Earnings Per Share | $1.68 | $1.23 | 36.6% | [Segment Operating Results](index=2&type=section&id=Segment%20Operating%20Results) Huron's Q1 2025 saw healthcare and education segments grow revenue by ~10%, with healthcare's operating income up significantly, while commercial revenue grew 17.0% but operating income declined - In Q1 2025, revenue, net of reimbursable expenses, by operating segment was: Healthcare (**50%**), Education (**31%**), and Commercial (**19%**)[9](index=9&type=chunk) Q1 2025 Revenue, Net of Reimbursable Expenses, and Operating Income by Segment | Segment | Q1 2025 Revenue (million USD) | Q1 2024 Revenue (million USD) | Revenue YoY Growth | Q1 2025 Operating Income (million USD) | Q1 2024 Operating Income (million USD) | Operating Income YoY Growth | | :--------- | :-------------------------- | :-------------------------- | :----------- | :------------------------------ | :------------------------------ | :--------------- | | Healthcare | $198.49 | $180.74 | 9.8% | $56.32 | $42.69 | 31.9% | | Education | $122.75 | $111.58 | 10.0% | $23.06 | $21.96 | 5.0% | | Commercial | $74.45 | $63.64 | 17.0% | $11.30 | $14.04 | (19.5)% | [Operational Metrics](index=2&type=section&id=Operational%20Metrics) Huron increased revenue-generating professionals in Q1 2025, especially in managed services, with improved utilization rates for consulting and digital capabilities, indicating enhanced operational efficiency - As of March 31, 2025, the number of revenue-generating professionals, excluding managed services professionals, increased by **3.1%** to **4,726**[8](index=8&type=chunk) - As of March 31, 2025, the number of managed services professionals increased by **37.7%** to **1,679**[8](index=8&type=chunk) Q1 2025 Capability Utilization Rates | Capability | Q1 2025 Utilization Rate | Q1 2024 Utilization Rate | | :------- | :----------------------- | :----------------------- | | Consulting | 74.1% | 70.2% | | Digital | 78.2% | 74.3% | [Outlook for 2025](index=2&type=section&id=Outlook%20for%202025) Huron reaffirmed its full-year 2025 financial guidance, expecting revenue, adjusted EBITDA percentage, and adjusted diluted EPS to remain within anticipated ranges Full-Year 2025 Financial Guidance | Metric | Full-Year 2025 Guidance Range | | :----------------------------------- | :-------------------------- | | Revenue, net of reimbursable expenses | $1.58 billion - $1.66 billion | | Adjusted EBITDA as a % of Revenue, net of reimbursable expenses | 14.0% - 14.5% | | Adjusted Diluted Earnings Per Share | $6.80 - $7.60 | [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) [Webcast Information](index=3&type=section&id=Webcast%20Information) The company will host a webcast to discuss its Q1 2025 financial results, with replay services available - The company will host a webcast to discuss its financial results on April 29, 2025, at 5:00 p.m. ET (4:00 p.m. CT)[11](index=11&type=chunk) - The webcast will be accessible via Huron's website at http://ir.huronconsultinggroup.com, with a replay available approximately two hours after the webcast concludes and for 90 days thereafter[11](index=11&type=chunk) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Management uses non-GAAP metrics like EBITDA and Adjusted Net Income to evaluate performance and provide outlook, believing these reflect ongoing operations, but cautions they may not be comparable or replace GAAP measures - Management utilizes non-GAAP measures including EBITDA, Adjusted EBITDA, Adjusted EBITDA as a % of Revenue, net of reimbursable expenses, Adjusted Net Income, and Adjusted Diluted Earnings Per Share to assess the company's financial performance and outlook[12](index=12&type=chunk) - Management believes these non-GAAP measures aid in understanding the company's comparative operating performance and are used for financial and operational decision-making, business outlook, and evaluating potential acquisitions and dispositions[12](index=12&type=chunk) - The company does not reconcile non-GAAP financial measures to their corresponding GAAP financial measures because the potential significance of certain reconciling items, which may vary from period to period and are outside the company's control, cannot be reasonably predicted[13](index=13&type=chunk) [About Huron](index=3&type=section&id=About%20Huron) Huron is a global professional services firm that helps clients achieve goals and create sustainable outcomes through strategy, operational optimization, digital transformation, and business enablement - Huron is a global professional services firm that partners with clients to make the future a reality by crafting sound strategies, optimizing operations, accelerating digital transformation, and enabling businesses to take control of their future[14](index=14&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements reflecting current expectations, but actual results may differ materially due to various known and unknown risks and uncertainties, with no obligation to update or revise - Forward-looking statements are identified by words such as 'may,' 'should,' 'expects,' 'provides,' 'anticipates,' 'assumes,' 'can,' 'will,' 'meets,' 'could,' 'likely,' 'intends,' 'might,' 'predicts,' 'seeks,' 'would,' 'believes,' 'estimates,' 'plans,' 'continues,' 'targets,' 'guidance,' or 'outlook,' or similar expressions[15](index=15&type=chunk) - Factors that could cause actual results to differ materially from those in the forward-looking statements include: failure to achieve expected utilization rates, billing rates, and the number of revenue-generating professionals required; inability to expand or adjust service offerings in response to market demands; reliance on client service renewals; reliance on new business and retention of existing clients and qualified personnel; failure to maintain third-party vendor relationships and strategic alliances; inability to license technology to or from third parties; goodwill impairment; various factors related to income and other taxes; difficulties in successfully integrating acquired businesses and achieving anticipated benefits; risks related to privacy, information security, and related laws and standards; and general downturns or fluctuations in market conditions[15](index=15&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) [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 presents Huron's unaudited consolidated statements of operations and other comprehensive income (loss) for Q1 2025 and 2024, detailing key financial data such as revenue, operating expenses, and net income Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited, in thousands of USD, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue, net of reimbursable expenses | $395,690 | $355,961 | | Total revenue | $404,141 | $363,385 | | Total operating expenses | $371,409 | $343,464 | | Operating income | $32,732 | $19,921 | | Net income | $24,536 | $18,006 | | Net income per diluted share | $1.33 | $0.95 | | Comprehensive income | $12,321 | $16,910 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This section presents Huron's unaudited consolidated balance sheets as of March 31, 2025, and December 31, 2024, showing the company's assets, liabilities, and stockholders' equity Consolidated Balance Sheets (Unaudited, in thousands of USD, except share and per share amounts) | Metric | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------- | :------------- | | Total current assets | $439,974 | $409,117 | | Total assets | $1,363,566 | $1,343,617 | | Total current liabilities | $211,493 | $338,820 | | Long-term debt, net of current portion | $561,511 | $342,857 | | Total liabilities and stockholders' equity | $1,363,566 | $1,343,617 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents Huron's unaudited consolidated statements of cash flows for Q1 2025 and 2024, detailing cash flows from operating, investing, and financing activities Consolidated Statements of Cash Flows (Unaudited, in thousands of USD) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(106,827) | $(130,724) | | Net cash used in investing activities | $(15,287) | $(30,599) | | Net cash provided by financing activities | $123,562 | $167,859 | | Net increase in cash and cash equivalents | $1,467 | $6,493 | | Cash and cash equivalents at end of period | $23,378 | $18,642 | [Supplemental Financial Data](index=8&type=section&id=Supplemental%20Financial%20Data) [Segment Operating Results and Other Operating Data (Detailed)](index=8&type=section&id=Segment%20Operating%20Results%20and%20Other%20Operating%20Data%20(Detailed)) This section provides detailed financial performance for Huron's operating segments, including revenue, operating income, and margins, along with revenue-generating professionals and utilization rates by segment and capability Segment Operating Results (Unaudited, in thousands of USD) | Segment | 2025 Revenue (thousands of USD) | 2024 Revenue (thousands of USD) | Revenue Growth | 2025 Operating Income (thousands of USD) | 2024 Operating Income (thousands of USD) | Operating Income Growth | 2025 Margin | 2024 Margin | | :--------- | :------------------------------ | :------------------------------ | :------------- | :--------------------------------------- | :--------------------------------------- | :---------------------- | :----------- | :----------- | | Healthcare | $198,490 | $180,742 | 9.8% | $56,316 | $42,694 | 31.9% | 28.4% | 23.6% | | Education | $122,748 | $111,583 | 10.0% | $23,060 | $21,956 | 5.0% | 18.8% | 19.7% | | Commercial | $74,452 | $63,636 | 17.0% | $11,296 | $14,039 | (19.5)% | 15.2% | 22.1% | | Huron Total | $395,690 | $355,961 | 11.2% | $32,732 | $19,921 | 64.3% | N/A | N/A | Revenue-Generating Professionals by Segment (End of Period) | Segment | March 31, 2025 | March 31, 2024 | Growth | | :------------------------- | :------------- | :------------- | :----- | | Healthcare | 1,209 | 1,192 | 1.4% | | Education | 1,167 | 1,099 | 6.2% | | Commercial | 2,350 | 2,293 | 2.5% | | Total (excluding managed services) | 4,726 | 4,584 | 3.1% | | Managed services | 1,679 | 1,219 | 37.7% | | Total | 6,405 | 5,803 | 10.4% | Revenue, Net of Reimbursable Expenses, by Capability | Capability | Q1 2025 (thousands of USD) | Q1 2024 (thousands of USD) | Growth | | :-------------------------- | :------------------------- | :------------------------- | :----- | | Consulting and Managed Services | $223,921 | $201,559 | 11.1% | | Digital | $171,769 | $154,402 | 11.2% | | Total | $395,690 | $355,961 | 11.2% | Utilization Rates by Capability | Capability | Q1 2025 | Q1 2024 | | :------- | :------ | :------ | | Consulting | 74.1% | 70.2% | | Digital | 78.2% | 74.3% | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation of Net Income to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Earnings%20Before%20Interest,%20Taxes,%20Depreciation%20and%20Amortization) This section provides a detailed reconciliation from GAAP net income to non-GAAP Adjusted EBITDA, listing adjustments and their impact on EBITDA and Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA (Unaudited, in thousands of USD) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net Income | $24,536 | $18,006 | | Add back: Income tax benefit | $(3,084) | $(446) | | Add back: Interest expense, net of interest income | $5,647 | $5,140 | | Add back: Depreciation and amortization | $7,149 | $6,181 | | **EBITDA** | **$34,248** | **$28,881** | | Add back: Restructuring charges | $1,338 | $2,337 | | Add back: Other losses | $0 | $1,568 | | Add back: Transaction-related expenses | $1,296 | $1,497 | | Add back: Unrealized loss on preferred stock investment | $4,210 | $0 | | Add back: Foreign currency transaction (gain) loss, net | $399 | $(465) | | **Adjusted EBITDA** | **$41,491** | **$33,818** | | Adjusted EBITDA as a % of Revenue, net of reimbursable expenses | 10.5% | 9.5% | [Reconciliation of Net Income to Adjusted Net Income](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) This section provides a detailed reconciliation from GAAP net income to non-GAAP Adjusted Net Income and Adjusted Diluted EPS, listing adjustments and their after-tax impact Reconciliation of Net Income to Adjusted Net Income (Unaudited, in thousands of USD, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net Income | $24,536 | $18,006 | | Diluted Earnings Per Share | $1.33 | $0.95 | | Add back: Amortization of intangible assets | $2,036 | $1,690 | | Add back: Restructuring charges | $1,338 | $2,337 | | Add back: Other losses | $0 | $1,568 | | Add back: Transaction-related expenses | $1,296 | $1,497 | | Add back: Unrealized loss on preferred stock investment | $4,210 | $0 | | Tax impact of adjustments | $(2,309) | $(1,844) | | Total adjustments, net of tax | $6,571 | $5,248 | | **Adjusted Net Income** | **$31,107** | **$23,254** | | **Adjusted Diluted Earnings Per Share** | **$1.68** | **$1.23** |

Company Performance - Huron Consulting (HURN) has returned approximately 13.9% year-to-date, significantly outperforming the average loss of 2% in the Business Services sector [4] - The Zacks Consensus Estimate for HURN's full-year earnings has increased by 3.4% over the past quarter, indicating improved analyst sentiment and earnings outlook [3] - Huron Consulting is ranked 1 (Strong Buy) in the Zacks Rank system, which emphasizes earnings estimates and revisions [3] Industry Context - Huron Consulting is part of the Consulting Services industry, which consists of 13 stocks and currently holds a Zacks Industry Rank of 20 [5] - The average performance of stocks in the Consulting Services industry has been a loss of 12.3% this year, highlighting HURN's superior performance [5] - Limbach (LMB), another stock in the Business Services sector, has returned 1.2% year-to-date and also holds a Zacks Rank of 1 (Strong Buy) [4][5]

Core Viewpoint - Huron Consulting (HURN) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Huron Consulting suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Huron Consulting is expected to earn $7.15 per share, reflecting a 10.5% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Huron Consulting has risen by 3.4%, indicating positive sentiment among analysts [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Huron Consulting's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

Group 1 - Huron Consulting (HURN) has shown strong year-to-date performance, with a return of approximately 17.8%, significantly outperforming the Business Services sector average of 2% [4] - The Zacks Consensus Estimate for HURN's full-year earnings has increased by 3.4% over the past three months, indicating improving analyst sentiment and a more positive earnings outlook [4] - Huron Consulting holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the market in the near term [3] Group 2 - Huron Consulting is part of the Consulting Services industry, which consists of 13 companies and currently ranks 83 in the Zacks Industry Rank, with an average loss of 9.1% year-to-date [6] - In comparison, Logility Supply Chain Solutions (LGTY), another stock in the Business Services sector, has performed even better with a year-to-date increase of 28.9% and a Zacks Rank of 2 (Buy) [5][7] - The Technology Services industry, which includes Logility, has seen an average decline of 5.3% since the beginning of the year, highlighting Huron Consulting's relative strength within its industry [7]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Huron Consulting Group (HURN) as a potentially undervalued stock based on various financial metrics. Group 1: Value Investing Strategy - Value investing focuses on identifying companies that are undervalued by the market, relying on traditional analysis of key valuation metrics to find profit opportunities [2] - The Zacks Rank system and Style Scores are tools that help investors identify stocks with specific traits, particularly in the "Value" category [3] Group 2: Huron Consulting Group (HURN) Metrics - HURN has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4] - The Forward P/E ratio for HURN is 20.38, significantly lower than the industry average of 25.58, with a historical range between 13.80 and 21.35 [4] - HURN's P/B ratio is 4.73, compared to the industry's average of 7.05, with a historical range of 3.10 to 4.82 [5] - The P/S ratio for HURN is 1.73, slightly below the industry's average of 1.76, indicating a favorable valuation [6] Group 3: Investment Outlook - The combination of HURN's attractive valuation metrics and strong earnings outlook positions it as one of the market's strongest value stocks [7]