FTI sulting(US:FCN)2025-10-24 20:15Financial Performance - Third quarter 2025 revenues reached $956.2 million, an increase of $30.1 million or 3.3% compared to $926.0 million in the prior year quarter[3] - Net income for the third quarter 2025 was $82.8 million, up from $66.5 million in the prior year quarter, reflecting a significant increase due to higher revenues and lower SG&A expenses[3] - Adjusted EBITDA for the third quarter 2025 was $130.6 million, representing 13.7% of revenues, compared to $102.9 million or 11.1% of revenues in the prior year quarter[3] - Earnings per diluted share (EPS) for the third quarter 2025 was $2.60, a 41% increase from $1.85 in the prior year quarter[5] - Operating income for Q3 2025 was $117,670 thousand, up from $90,892 thousand in Q3 2024, representing a 29.5% increase[27] - Comprehensive income for Q3 2025 was $77,902 thousand, down from $95,218 thousand in Q3 2024[27] - Net income for the three months ended September 30, 2024, was $66,466,000, while for the nine months it was $230,378,000[33] - Adjusted EBITDA for the three months ended September 30, 2024, was $102,948,000, and for the nine months it was $329,942,000, reflecting a margin of 11.1% and 12.8% respectively[35] Segment Performance - Corporate Finance & Restructuring segment revenues increased by $63.4 million or 18.6% to $404.9 million, driven by higher demand for restructuring services[9] - Forensic and Litigation Consulting segment revenues rose by $25.9 million or 15.4% to $194.7 million, attributed to increased demand for risk and investigations services[10] - Economic Consulting segment revenues decreased by $48.9 million or 22.0% to $173.1 million, primarily due to lower demand for non-M&A-related antitrust services[11] - Technology segment revenues fell by $16.3 million or 14.8% to $94.1 million, mainly due to reduced demand for M&A-related services[12] - Corporate Finance & Restructuring segment revenue for the three months ended September 30, 2024, was $341,512,000, with an adjusted EBITDA of $57,919,000, resulting in an EBITDA margin of 17.0%[35] - Forensic and Litigation Consulting segment revenue for the same period was $168,778,000, with an adjusted EBITDA of $19,991,000, yielding an EBITDA margin of 11.8%[35] - Economic Consulting segment reported revenue of $222,033,000 and adjusted EBITDA of $35,244,000, achieving a margin of 15.9%[35] Guidance and Projections - The company updated its full year 2025 guidance, estimating revenues between $3.685 billion and $3.735 billion, with EPS ranging from $7.62 to $8.12[14] - Guidance for diluted EPS for the year ended December 31, 2025 is estimated between $7.62 and $8.12[31] Balance Sheet and Cash Flow - As of September 30, 2025, total debt, net of cash, was $364.0 million, an increase attributed to share repurchases[7] - Total assets decreased to $3,489,785 thousand as of September 30, 2025, from $3,596,830 thousand as of December 31, 2024[25] - Total liabilities increased to $1,740,130 thousand as of September 30, 2025, compared to $1,338,540 thousand as of December 31, 2024[25] - Net cash used in operating activities for the nine months ended September 30, 2025, was $(207,624,000), compared to $79,782,000 for the same period in 2024[37] - The company reported a significant increase in borrowings under the revolving line of credit, totaling $1,040,000,000 for the nine months ended September 30, 2025[37] - Cash and cash equivalents at the end of the period were $145,967,000, down from $386,344,000 at the same time last year[37] Special Charges - Special charges for the nine months ended September 30, 2025, amounted to $25,295 thousand, with no special charges reported in the same period of 2024[29] Average Billable Rate - The average billable rate for Corporate Finance & Restructuring was $533, with a billable headcount of 2,312 as of September 30, 2025[35]