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]

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]

Financial Data and Key Metrics Changes - The fourth quarter of 2024 produced record revenues before reimbursable expenses (RBR) of $388.4 million, up 14.5% from $339.2 million in the same quarter of 2023 [39] - For the full year 2024, RBR was $1.49 billion, up 9.1% from $1.36 billion in 2023, following strong growth of 20.3% in 2023 over 2022 [40] - Net income for Q4 2024 was $34 million, or $1.84 per diluted share, compared to $2.8 million or $0.15 per diluted share in Q4 2023 [40] - Adjusted EBITDA was $56.8 million in Q4 2024, or 14.6% of RBR, compared to $41.4 million in Q4 2023, or 12.2% of RBR [43] - For the full year 2024, adjusted EBITDA as a percentage of RBR increased to 13.5%, compared to 12.3% in 2023 [44] Business Line Data and Key Metrics Changes - The Healthcare segment generated 52% of total company RBR in Q4 2024, with RBR of $202.3 million, up 17.6% from Q4 2023 [46] - The Education segment posted RBR of $118.8 million in Q4 2024, up 14.5% from Q4 2023, driven by demand for digital and strategy offerings [50] - The Commercial segment generated RBR of $67.3 million in Q4 2024, growing 6.1% over the prior year period, but declined 1.1% for the full year to $255.6 million [53] Market Data and Key Metrics Changes - The Healthcare segment achieved record RBR of $756.3 million for the full year 2024, growing 12.2% over 2023 [47] - The Education segment's full year RBR grew 10.4% year-over-year to a record $474.2 million [51] - The Commercial segment's operating income margin decreased to 20% for the full year 2024, compared to 21% in 2023, reflecting increased salaries and related expenses [55] Company Strategy and Development Direction - The company’s integrated growth strategy has driven record RBR and expanded adjusted EBITDA margins for four consecutive years, focusing on healthcare and education while expanding in commercial industries [7][30] - The company plans to continue broadening its portfolio to meet the expanding needs of healthcare clients and enhance its offerings in education and commercial sectors [11][21] - The acquisition of AXIA Consulting is expected to strengthen the company’s supply chain management offerings and broaden its technology portfolio [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that many healthcare organizations will likely need to take further actions to achieve financial sustainability due to declining provider margins and increasing costs [12][13] - The company anticipates mid-single-digit revenue growth in the healthcare segment for 2025, reflecting a more cautious outlook after several years of strong growth [64][109] - Management expressed confidence in the robustness of their pipeline and backlog, indicating that they have not seen significant clients reprioritizing spending despite a dynamic regulatory environment [72][75] Other Important Information - The company returned over $122 million of capital to shareholders via share repurchases in 2024, with a stock price increase of 21% [9] - Cash flow generated from operations for 2024 was a record $201 million, resulting in record free cash flow of $168 million [56] - The company expects adjusted diluted earnings per share for 2025 to be in the range of $6.80 to $7.60, reflecting an 11% increase over 2024 [61] Q&A Session Summary Question: Impact of Regulatory Backdrop on Pipeline - Management indicated that they have not seen significant clients reprioritizing spending and feel well-positioned to help clients navigate current uncertainties [72][74] Question: Headcount Growth Plans - The increase in headcount growth was attributed to the acquisition of AXIA and continued strong sales conversion, particularly in healthcare and digital business [78] Question: Medical Research Funding Reductions - Management explained that reduced research funding impacts education clients' revenue, necessitating changes in their institutions to respond to funding reductions [84] Question: Utilization Expectations - Management expects continued improvement in utilization rates, with Q4 2024 above 77% and a positive outlook for the first half of 2025 [87] Question: Higher Medical Costs Impact - Management noted that higher medical costs could squeeze margins for healthcare clients, impacting overall financial performance [90]