FTI CONSULTING, INC (FCN): Results of Operations and Financial Condition
FTI CONSULTING, INC (FCN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FTI Consulting, Inc. 555 12th Street NW Washington, DC 20004 +1.202.312.9100 Investor & Media Contact: Mollie Hawkes +1.617.747.1791 mollie.hawkes@fticonsulting.com FTI Consulting Reports Second Quarter 2026 Financial Results • Record Second Quarter 2026 Revenues of
How this was made
The 30-second read
Why it matters
Traders can update valuation and positioning based on the revised EPS guidance range and the company’s capital return actions, while monitoring cost and litigation-related expense dynamics that reduced net income and EBITDA versus the prior year quarter.
Market read
Fresh Q2 earnings metrics and an updated EPS guidance range are the primary drivers for near-term repricing, supported by record revenues and active buybacks.
What to watch
Total debt net of cash rose materially, and the quarter’s adjusted EBITDA excluded $6.6M of extraordinary litigation-related expenses, which may affect comparability and forward earnings quality.
Record Second Quarter 2026 Revenues of $993.5 Million, Up 5.3% Compared to $943.7 Million in Prior Year Quarter
Record revenue growth and sharply higher operating cash flow were accompanied by lower net income, lower GAAP EPS, lower Adjusted EBITDA margin and a reduced full-year EPS guidance range.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $993.5 million | – | 5.3% |
| Net incomeGAAP | $57.8 million | – | – |
| EPSGAAP | $1.99 | – | – |
| Adjusted EBITDAnon-GAAP | $104.5 million | – | – |
| Adjusted EBITDA Marginnon-GAAP | 10.5% of revenues | – | – |
| Adjusted EPSnon-GAAP | $2.16 | – | – |
| Extraordinary Litigation-Related Expensesnon-GAAP | $6.6 million | – | – |
| EPS reduction from Extraordinary Litigation-Related ExpensesGAAP | $0.17 | – | – |
| Net cash provided by operating activitiesGAAP | $152.3 million | – | – |
| Corporate Finance segment operating incomeGAAP | $82.5 million | – | – |
| Corporate Finance Adjusted Segment EBITDAnon-GAAP | $86.0 million | – | – |
| Corporate Finance Adjusted Segment EBITDA marginnon-GAAP | 20.9% of segment revenues | – | – |
| Forensic and Litigation Consulting segment operating incomeGAAP | $29.2 million | – | – |
| Forensic and Litigation Consulting Adjusted Segment EBITDAnon-GAAP | $31.4 million | – | – |
| Forensic and Litigation Consulting Adjusted Segment EBITDA marginnon-GAAP | 16.1% of segment revenues | – | – |
| Economic Consulting segment operating incomeGAAP | $7.4 million | – | – |
| Economic Consulting Adjusted Segment EBITDAnon-GAAP | $8.8 million | – | – |
| Economic Consulting Adjusted Segment EBITDA marginnon-GAAP | 4.7% of segment revenues | – | – |
| Technology segment operating incomeGAAP | $4.8 million | – | – |
| Technology Adjusted Segment EBITDAnon-GAAP | $9.1 million | – | – |
| Technology Adjusted Segment EBITDA marginnon-GAAP | 9.1% of segment revenues | – | – |
| Strategic Communications segment operating incomeGAAP | $17.4 million | – | – |
| Strategic Communications Adjusted Segment EBITDAnon-GAAP | $18.5 million | – | – |
| Strategic Communications Adjusted Segment EBITDA marginnon-GAAP | 18.5% of segment revenues | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Corporate FinanceHigher realized bill rates for transactions, transformation and turnaround & restructuring services, increased demand for transformation services and higher success fees, partially offset by lower demand for turnaround & restructuring services. | $411.4 million | – | 8.5% |
| Forensic and Litigation ConsultingHigher realized bill rates and demand for risk & investigations services, partially offset by lower demand for dispute advisory services. | $194.3 million | – | 4.1% |
| Economic ConsultingLower demand for non-M&A-related antitrust and international arbitration services, partially offset by higher demand for M&A-related antitrust services and higher realized bill rates for financial economics services. | $188.8 million | – | (1.5%) |
| TechnologyHigher demand for M&A-related “second request” services, partially offset by lower demand for investigations services. | $99.0 million | – | 18.4% |
| Strategic CommunicationsA $7.4 million decline in pass-through revenues. Excluding pass-through revenues, revenues increased $4.7 million, or 5.4%, primarily due to higher demand for corporate reputation services. | $100.0 million | – | (2.6%) |
full year 2026 outlook
- Revenuebetween $3.940 billion and $4.100 billion
- NoteEPS: between $8.70 and $9.30
- NoteAdjusted EPS: between $9.10 and $9.70
- NoteThe variance between EPS and Adjusted EPS guidance includes an estimated $0.40 of Extraordinary Litigation-Related Expenses.
Capital returns
- On June 3, 2026, the Board of Directors authorized an additional $370.0 million to repurchase outstanding common stock under the stock repurchase program.
- During the quarter ended June 30, 2026, the Company repurchased 2,591,133 shares of common stock at an average price per share of $150.84 for a total cost of $390.9 million.
- Approximately $344.0 million remained available for common stock repurchases under the stock repurchase program as of June 30, 2026.
What drove it
- Total revenue increased $49.8 million, or 5.3%, primarily driven by growth in Corporate Finance, Technology and Forensic and Litigation Consulting, partially offset by a $9.2 million decline in pass-through revenues.
- Corporate Finance benefited from higher realized bill rates, transformation demand and higher success fees; billable headcount increased 7.8%.
- Forensic and Litigation Consulting benefited from higher realized bill rates and risk & investigations demand; billable headcount increased 3.0%.
- Technology growth reflected demand for M&A-related “second request” services.
- Operating cash flow increased primarily because of higher cash collections and decreases in forgivable loan issuances and income tax payments.
Concerns
- Net income declined to $57.8 million from $71.7 million, primarily due to higher direct costs, SG&A expenses and interest expense.
- Adjusted EBITDA declined to $104.5 million from $111.6 million, while Adjusted EBITDA Margin declined to 10.5% of revenues from 11.8% of revenues.
- Economic Consulting revenue declined $2.8 million, or 1.5%, and its Adjusted Segment EBITDA declined to $8.8 million from $14.2 million.
- The Company reduced its full-year 2026 EPS range to between $8.70 and $9.30 from between $8.90 and $9.60.
- Total debt, net of cash, increased to $856.3 million at June 30, 2026 from $556.7 million at March 31, 2026, primarily due to share repurchases.
What to watch
- Execution against the reaffirmed full-year 2026 revenue guidance range of between $3.940 billion and $4.100 billion.
- Delivery against the updated full-year EPS range of between $8.70 and $9.30 and Adjusted EPS range of between $9.10 and $9.70.
- Whether Corporate Finance and Technology demand continues to offset lower demand in Economic Consulting and the decline in Strategic Communications pass-through revenues.
- Compensation, SG&A expenses, direct costs and interest expense, which affected net income and Adjusted EBITDA in the quarter.
- The impact of an estimated $0.40 of Extraordinary Litigation-Related Expenses in the full-year EPS and Adjusted EPS guidance variance.
Balance sheet and cash flow
- Net cash provided by operating activities was $152.3 million for the quarter ended June 30, 2026, compared to $55.7 million for the quarter ended June 30, 2025.
- Cash and cash equivalents were $163.7 million at June 30, 2026, compared to $152.8 million at June 30, 2025 and $198.3 million at March 31, 2026.
- Total debt, net of cash, was $856.3 million at June 30, 2026, compared to $317.2 million at June 30, 2025 and $556.7 million at March 31, 2026.
- The sequential increase in total debt, net of cash, was primarily due to share repurchases.
Analysis
FTI Consulting reported record second-quarter 2026 revenues of $993.5 million, up 5.3% from $943.7 million in the prior-year quarter. Corporate Finance was the largest contributor to growth, with revenue of $411.4 million, followed by Technology at $99.0 million and Forensic and Litigation Consulting at $194.3 million. The company cited higher realized bill rates, transformation demand, success fees, risk & investigations demand and M&A-related “second request” services as important contributors. A $9.2 million decline in pass-through revenues partially offset overall growth.
Profitability weakened despite the revenue increase. Net income declined to $57.8 million from $71.7 million, while GAAP EPS declined to $1.99 from $2.13. The company attributed the net-income decrease primarily to higher direct costs, SG&A expenses and interest expense, partially offset by higher revenue and a lower income tax provision. Adjusted EBITDA declined to $104.5 million from $111.6 million, and Adjusted EBITDA Margin declined to 10.5% of revenues from 11.8% of revenues. Second-quarter EPS included $6.6 million of Extraordinary Litigation-Related Expenses, which reduced EPS by $0.17; Adjusted EPS was $2.16 compared with $2.13.
Segment results showed uneven demand and margin performance. Corporate Finance revenue increased 8.5% and Adjusted Segment EBITDA increased to $86.0 million, but its Adjusted Segment EBITDA margin declined to 20.9% of segment revenues from 21.5% of segment revenues amid higher compensation and SG&A expenses. Forensic and Litigation Consulting revenue increased 4.1%, but its Adjusted Segment EBITDA margin declined to 16.1% of segment revenues from 16.7% of segment revenues. Technology delivered the strongest revenue growth at 18.4% and improved its Adjusted Segment EBITDA margin to 9.1% of segment revenues from 6.3% of segment revenues.
Economic Consulting was the principal operating weak point. Its revenue declined 1.5% to $188.8 million, segment operating income declined to $7.4 million from $12.8 million, and Adjusted Segment EBITDA declined to $8.8 million from $14.2 million. The company cited lower demand for non-M&A-related antitrust and international arbitration services and higher compensation. Strategic Communications revenue declined 2.6% to $100.0 million because of a $7.4 million decline in pass-through revenues, although revenue excluding pass-through revenues increased $4.7 million, or 5.4%, on corporate reputation demand.
Cash flow and capital allocation were significant features of the period. Net cash provided by operating activities increased to $152.3 million from $55.7 million, primarily due to higher cash collections and lower forgivable loan issuances and income tax payments. The company repurchased 2,591,133 shares for $390.9 million and received an additional $370.0 million repurchase authorization. Cash and cash equivalents were $163.7 million, while total debt, net of cash, was $856.3 million; the company said the sequential increase in net debt was primarily due to share repurchases.
FTI reaffirmed its full-year 2026 revenue guidance range of between $3.940 billion and $4.100 billion, but reduced its EPS guidance range to between $8.70 and $9.30 from between $8.90 and $9.60. It introduced Adjusted EPS guidance of between $9.10 and $9.70. The company stated that the variance between EPS and Adjusted EPS guidance includes an estimated $0.40 of Extraordinary Litigation-Related Expenses. The unchanged revenue guide alongside lower EPS guidance focuses attention on expense, interest and litigation-related pressures rather than topline demand.
Management, verbatim
Our performance this quarter demonstrates, once again, the underlying power of this institution and the resilience created by our sustained, multiyear investments in great talent. As clients face ever more complicated and disrupted environments, the depth and breadth of our capabilities across our global platform are increasingly relevant. Though the event-driven nature of our business means we will always have zigs and zags someplace around the world, we continue to feel confident and excited about our multiyear trajectory.
Steven H. Gunby, CEO and Chairman of FTI Consulting
Not in the filing
stated, not guessed- Consolidated gross profit and gross margin were not reported in the provided filing text.
- Consolidated operating income and operating margin were not reported in the provided filing text.
- Consolidated operating expenses and SG&A expense amounts were not reported in the provided filing text.
- Income tax provision amount and effective tax rate were not reported in the provided filing text.
- Adjusted net income was not reported in the provided filing text.
- Free cash flow was not reported in the provided filing text.
- Total debt before cash, debt maturities and interest expense amount were not reported in the provided filing text.
- Dividend declaration or dividend payment information was not reported in the provided filing text.
- Prior-quarter revenue, net income, EPS, Adjusted EBITDA and segment revenue comparatives were not reported in the provided filing text.
- Forward guidance for gross margin, operating expenses and tax rate was not reported in the provided filing text.
- The previous release outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with FTI Consulting’s Q2 2026 results and guidance update, including capital allocation details.
Ticker impact
FTI Consulting reported Q2 2026 record revenues of $993.5M and updated EPS guidance to $8.70-$9.30, plus introduced adjusted EPS $9.10-$9.70.
Moderately positive bias for FCN as traders reprice FY EPS range and capital return capacity, with downside risk from lower net income and higher costs.
The filing includes fresh, decision-relevant numbers: Q2 EPS/adjusted EPS, reaffirmed revenue guidance, and an updated EPS range, alongside a large incremental $370M repurchase authorization and quarter buyback activity.
Market effects
Signals demand resilience in event-driven advisory services, with strength in Corporate Finance, Technology, and Forensic and Litigation segments.
No explicit regional impact disclosed beyond global platform commentary.
Limited to company-specific guidance and segment performance; no cross-border macro or regulatory catalyst mentioned.
Counterpoint
Despite record revenues, net income and adjusted EBITDA declined year over year, suggesting margin pressure that could cap upside from the guidance update.
Key entities
- companyFTI Consulting, Inc.
Reported Q2 2026 financial results, reaffirmed revenue guidance, and updated EPS guidance ranges; authorized additional $370M share repurchases.
- executiveSteven H. Gunby
CEO and Chairman who commented on performance and multiyear trajectory.
