CEOs Accelerate Performance Improvement Initiatives, Capital Markets Activity Amid Legislative Disruption Through this research, Capstone has evaluated the health of the middle market in 2025, uncovering recent challenges faced by business owners and the resources required to offset these challenges. The report also provides an analysis of forward-looking growth strategies and initiatives, business owners' outlooks on their respective industries and the broader U.S. economy, and expected revenue changes. To ...

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]