FTI Consulting Reports First Quarter 2025 Financial Results

Core Viewpoint - FTI Consulting reported a decline in revenues and net income for the first quarter of 2025, primarily due to lower performance in the Economic Consulting and Corporate Finance & Restructuring segments, although some segments showed growth. The company also announced an increase in its share repurchase authorization. Financial Performance - First quarter 2025 revenues were $898.3 million, a decrease of $30.3 million or 3.3% from $928.6 million in the prior year quarter [2] - Net income for the first quarter was $61.8 million, down from $80.0 million in the prior year quarter, impacted by a special charge of $25.3 million related to severance and employee-related costs [2][3] - Adjusted EBITDA was $115.2 million, representing 12.8% of revenues, compared to $111.1 million or 12.0% of revenues in the prior year quarter [2] Earnings Per Share - Earnings per diluted share (EPS) for the first quarter 2025 was $1.74, down from $2.23 in the prior year quarter, with a special charge reducing EPS by $0.55 [3] - Adjusted EPS for the first quarter was $2.29, slightly up from $2.23 in the prior year quarter [3] Segment Performance - Corporate Finance & Restructuring segment revenues decreased by $22.4 million or 6.1% to $343.6 million, primarily due to lower demand for transformation and strategy services [9] - Forensic and Litigation Consulting segment revenues increased by $14.5 million or 8.3% to $190.6 million, driven by higher realized bill rates for risk and investigations services [12] - Economic Consulting segment revenues decreased by $24.7 million or 12.1% to $179.9 million, mainly due to lower demand for M&A-related services [13] - Technology segment revenues decreased by $3.6 million or 3.5% to $97.2 million, attributed to lower demand for M&A-related services [14] - Strategic Communications segment revenues increased by $5.8 million or 7.2% to $87.0 million, supported by higher demand for corporate reputation services [15] Cash Position and Capital Allocation - Net cash used in operating activities was $465.2 million for the quarter, compared to $274.8 million in the prior year quarter, primarily due to increased forgivable loan issuances and higher variable compensation [5] - The company repurchased 1,126,995 shares at an average price of $165.15, totaling $186.1 million, with approximately $264.3 million remaining for future repurchases [6][8] - Cash and cash equivalents decreased to $151.1 million from $244.0 million a year ago, with total debt net of cash at $8.9 million [7] Special Charges - The company incurred a special charge of $25.3 million in the first quarter, part of a broader restructuring effort that included a total of $33.5 million in special charges over two quarters, reflecting a reduction of approximately 5% of its workforce [16]