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Huron Announces Record Second Quarter 2026 Financial Results and Increases 2026 Guidance

July 28, 2026 4:05 PM

SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS

YEAR-TO-DATE 2026 FINANCIAL HIGHLIGHTS

2026 GUIDANCE AND OTHER HIGHLIGHTS

CHICAGO--(BUSINESS WIRE)-- Global professional services firm Huron (Nasdaq: HURN) today announced financial results for the quarter ended June 30, 2026.

“Led by strong organic growth across all three segments, we achieved record revenues before reimbursable expenses (RBR) in the second quarter of 2026, reflecting a 16% increase compared to the second quarter of 2025, including record RBR across our Consulting and Managed Services and Digital capabilities,” said Mark Hussey, chief executive officer and president of Huron. “We are also pleased with our continued margin expansion and robust cash flow from operations delivered in the quarter.”

“Our strong first half performance coupled with the continued strength of our backlog and pipeline underly the increase in our full-year RBR and earnings guidance, building upon our track record of growth and margin expansion since 2021. We believe our deep industry expertise and proprietary data and insights embedded into and in combination with our AI capabilities will continue to drive market-leading outcomes and significant value for our clients,” added Hussey.

SECOND QUARTER 2026 RESULTS

Revenues before reimbursable expenses (RBR) increased $63.1 million, or 15.7%, to $465.6 million for the second quarter of 2026, compared to $402.5 million for the second quarter of 2025. This growth reflects strength in demand across all three of the company's operating segments and across both the company's Consulting and Managed Services and Digital capabilities. The overall increase includes $19.5 million of incremental RBR from the company's acquisitions completed since March 31, 2025. Excluding the $19.5 million of incremental RBR from the company's acquisitions, RBR grew 10.8% organically.

Net income increased $11.8 million, or 60.8%, to $31.2 million, or 6.6% of total revenues, for the second quarter of 2026, compared to $19.4 million, or 4.7% of total revenues, for the same quarter last year. Results for Q2 2025 include an $8.2 million non-cash impairment charge, net of tax, related to the company's convertible debt investment in a third-party. Diluted earnings per share increased $0.82, or 75.2%, to $1.91 for the second quarter of 2026, compared to $1.09 for the second quarter of 2025. The non-cash impairment charge related to the company's convertible debt investment in a third-party had an unfavorable $0.46 impact on diluted earnings per share for the prior year period.

Second quarter 2026 earnings before interest, taxes, depreciation and amortization (“EBITDA”)(9) increased $20.9 million, or 47.3%, to $65.3 million compared to $44.3 million in the same prior year period.

In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands).

Three Months Ended

June 30,

2026

2025

Amortization of intangible assets

$

3,938

$

2,302

Restructuring charges

$

410

$

560

Other losses (gains)(10)

$

3,850

$

(71

)

Transaction-related expenses

$

1,868

$

3,590

Unrealized losses on long-term investments, net

$

1,172

$

11,929

Tax effect of adjustments

$

(2,231

)

$

(4,075

)

Foreign currency transaction losses, net

$

84

$

264

Adjusted EBITDA(9) increased $12.1 million, or 19.9%, to $72.6 million, or 15.6% of RBR(9), in the second quarter of 2026, compared to $60.6 million, or 15.1% of RBR(9), in the same quarter last year. Adjusted net income(9) increased $6.6 million, or 19.5%, to $40.2 million, or $2.46 per diluted share(9), for the second quarter of 2026, compared to $33.7 million, or $1.89 per diluted share(9), for the same quarter in 2025.

The number of revenue-generating professionals(1), excluding Managed Services professionals, increased 7.0% to 5,335 as of June 30, 2026 from 4,986 as of June 30, 2025 as a result of the acquisitions completed since the second quarter of 2025 and hiring to support the overall increase in demand for the company's services. The utilization rate(8) of the company's Consulting capability increased to 81.3% during the second quarter of 2026, compared to 77.0% during the same period last year. The utilization rate(8) for the company's Digital capability increased to 81.8% during the second quarter of 2026, compared to 77.8% during the same period last year. The number of Managed Services professionals increased to 3,913 as of June 30, 2026 from 1,895 as of June 30, 2025. This increase includes the company's acquisition of RelateCare in the second quarter of 2026, which added approximately 1,100 Managed Services professionals.

Huron returned $53.1 million to shareholders in Q2 2026 by repurchasing 438,456 shares of the company's common stock, representing 2.5% of the company's common stock outstanding as of December 31, 2025.

YEAR-TO-DATE 2026 RESULTS

Revenues before reimbursable expenses (RBR) increased $111.2 million, or 13.9%, to $909.3 million for the first six months of 2026 from $798.2 million for the first six months of 2025. This growth reflects strength in demand across all three of the company's operating segments and across both the company's Consulting and Managed Services and Digital capabilities. The overall increase includes $38.7 million of incremental RBR from the company's acquisitions completed since December 31, 2024. Excluding the $38.7 million of incremental RBR from the company's acquisitions, RBR grew 9.1% organically.

Net income increased $10.5 million, or 23.9%, to $54.5 million for the first six months of 2026, compared to $44.0 million for the first six months of 2025. Results for the first six months of 2025 include an $8.2 million non-cash impairment charge, net of tax, related to the company's convertible debt investment in a third-party. Diluted earnings per share increased $0.80, or 33.1%, to $3.22 for the first six months of 2026, compared to $2.42 for the first six months of 2025. The non-cash impairment charge related to the company's convertible debt investment in a third-party had an unfavorable $0.45 impact on diluted earnings per share for the first six months of 2025.

EBITDA(9) increased $32.6 million, or 41.5%, to $111.2 million for the first six months of 2026, compared to $78.6 million for the first six months of 2025.

In addition to using EBITDA to evaluate the company’s financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands).

Six Months Ended

June 30,

2026

2025

Amortization of intangible assets

$

7,840

$

4,338

Restructuring charges

$

1,073

$

1,898

Other losses (gains)(10)

$

7,690

$

(71

)

Transaction-related expenses

$

2,691

$

4,886

Unrealized losses on long-term investments, net

$

1,172

$

16,139

Gain on sale of business

$

(303

)

$

—

Tax effect of adjustments

$

(4,366

)

$

(6,384

)

Foreign currency transaction losses (gains), net

$

(263

)

$

663

Adjusted EBITDA(9), increased $21.2 million, or 20.7%, to $123.2 million, or 13.6% of RBR(9), for the first six months of 2026 from $102.1 million, or 12.8% of RBR(9), for the same prior year period. Adjusted net income(9) increased $5.5 million, or 8.5%, to $70.3 million, to $4.16 per diluted share(9), for the first six months of 2026, compared to $64.8 million, or $3.57 per diluted share(9), for the same prior year period.

The number of revenue-generating professionals(1), excluding Managed Services professionals, increased 7.0% to 5,335 as of June 30, 2026 from 4,986 as of June 30, 2025 as a result of the acquisitions completed since the second quarter of 2025 and hiring to support the overall increase in demand for the company's services. The utilization rate(8) of the company's Consulting capability increased to 77.8% during the first six months of 2026, compared to 75.6% during the same period last year. The utilization rate(8) for the company's Digital capability increased to 78.3% during the first six months of 2026, compared to 78.0% during the same period last year. The number of Managed Services professionals increased to 3,913 as of June 30, 2026 from 1,895 as of June 30, 2025. This increase includes the company's acquisition of RelateCare in the second quarter of 2026, which added approximately 1,100 Managed Services professionals.

Huron returned $208.6 million to shareholders during the first six months of 2026 through repurchases of 1,553,262 shares of the company's common stock, representing 9.0% of the company's common stock outstanding as of December 31, 2025.

OPERATING INDUSTRIES

The company’s year-to-date 2026 revenues before reimbursable expenses (RBR) by operating segment as a percentage of total company RBR are as follows: Healthcare (50%); Education (29%); and Commercial (21%). Financial results by operating industry are included in the attached schedules and in Huron's forthcoming Quarterly Report on Form 10-Q filing for the quarter ended June 30, 2026.

OUTLOOK FOR 2026

Based on currently available information, the company increased guidance for full year 2026 revenues before reimbursable expenses (RBR) to a range of $1.85 billion to $1.89 billion. The company also anticipates adjusted EBITDA as a percentage of RBR(9) in a range of 14.5% to 15.0%, and adjusted diluted earnings per share(9) guidance in a range of $9.00 to $9.40.

SECOND QUARTER 2026 WEBCAST

The company will host a webcast to discuss its financial results today, July 28, 2026, at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time. The conference call is being webcast by Notified and can be accessed from Huron's website at http://ir.huronconsultinggroup.com. A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter.

USE OF NON-GAAP FINANCIAL MEASURES(9)

In evaluating the company’s financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues before reimbursable expenses (RBR), adjusted net income, and adjusted diluted earnings per share, which are non-GAAP financial measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing the company's business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.

Management has provided its outlook regarding adjusted EBITDA as a percentage of RBR and adjusted diluted earnings per share, both of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort.

ABOUT HURON

Huron is a global professional services firm that collaborates with organizations to help solve their most complex challenges and achieve their most ambitious goals. Working across the private and public sectors, we partner closely with clients to improve performance, accelerate transformation, and unlock new opportunities for growth.

Our clients choose us because of our deep industry and technical expertise and proven track record of turning sound strategies into action. By combining practical experience, innovative thinking, and advanced analytics and technology, Huron helps organizations translate today’s ideas into tangible results and long-term value. Learn more at www.huronconsultinggroup.com.

Statements in this press release that are not historical in nature, including those concerning the company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans,” “positions,” “continues,” “goals,” “guidance,” or “outlook,” or similar expressions. These forward-looking statements reflect the company's current expectations about future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: failure to achieve expected utilization rates, billing rates, and the necessary number of revenue-generating professionals; our ability to realize the expected benefits and potential opportunities of artificial intelligence (AI); inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; risks relating to privacy, information security, and related laws and standards; and a general downturn or volatility in market conditions, including as a result of current global trade tensions and/or tariffs. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under “Item 1A. Risk Factors” in Huron's Annual Report on Form 10-K for the year ended December 31, 2025 that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. The company disclaims any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.

Please note that information contained in any referenced website is not incorporated by reference in this press release or considered to be part of this document. Such website references are intended to be inactive textual references only.

HURON CONSULTING GROUP INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Revenues:

Revenues before reimbursable expenses

$

465,636

$

402,505

$

909,348

$

798,195

Reimbursable expenses

9,406

9,250

17,461

17,701

Total revenues

475,042

411,755

926,809

815,896

Operating expenses:

Direct costs (exclusive of depreciation and amortization included below)

311,187

269,028

619,381

547,071

Reimbursable expenses

9,406

9,250

17,461

17,695

Selling, general and administrative expenses

89,793

80,217

174,504

156,851

Other losses (gains)

3,850

(71

)

7,690

(71

)

Restructuring charges

410

560

1,073

1,898

Depreciation and amortization

10,148

7,117

19,869

14,066

Total operating expenses

424,794

366,101

839,978

737,510

Operating income

50,248

45,654

86,831

78,386

Other income (expense), net:

Interest expense, net of interest income

(11,939

)

(9,281

)

(20,830

)

(14,928

)

Other income (expense), net

4,599

(8,665

)

3,973

(14,298

)

Total other expense, net

(7,340

)

(17,946

)

(16,857

)

(29,226

)

Income before taxes

42,908

27,708

69,974

49,160

Income tax expense

11,674

8,278

15,493

5,194

Net income

$

31,234

$

19,430

$

54,481

$

43,966

Earnings per share:

Net income per basic share

$

1.93

$

1.12

$

3.28

$

2.50

Net income per diluted share

$

1.91

$

1.09

$

3.22

$

2.42

Weighted average shares used in calculating earnings per share:

Basic

16,208

17,320

16,594

17,569

Diluted

16,387

17,772

16,902

18,137

Comprehensive income (loss):

Net income

$

31,234

$

19,430

$

54,481

$

43,966

Foreign currency translation adjustments, net of tax

(1,807

)

2,749

(3,738

)

3,284

Unrealized loss on investment, net of tax

(1,330

)

(5,249

)

(1,330

)

(15,766

)

Unrealized gain (loss) on cash flow hedging instruments, net of tax

1,897

(2,114

)

2,927

(4,347

)

Other comprehensive loss

(1,240

)

(4,614

)

(2,141

)

(16,829

)

Comprehensive income

$

29,994

$

14,816

$

52,340

$

27,137

HURON CONSULTING GROUP INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)

June 30,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$

31,228

$

24,508

Receivables from clients, net

203,815

186,506

Unbilled services, net

238,057

195,464

Income tax receivable

15,560

8,430

Prepaid expenses and other current assets

41,118

33,676

Total current assets

529,778

448,584

Property and equipment, net

27,691

23,472

Deferred income taxes, net

3,564

3,563

Long-term investments

33,931

36,433

Operating lease right-of-use assets

20,878

20,027

Other non-current assets

142,797

134,781

Intangible assets, net

81,182

72,927

Goodwill

804,939

786,896

Total assets

$

1,644,760

$

1,526,683

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

16,802

$

12,354

Accrued expenses and other current liabilities

59,416

38,117

Accrued payroll and related benefits

173,027

266,950

Current maturities of long-term debt

20,000

20,000

Current maturities of operating lease liabilities

9,797

14,304

Deferred revenues

30,885

31,708

Total current liabilities

309,927

383,433

Non-current liabilities:

Deferred compensation and other liabilities

73,238

63,316

Long-term debt, net of current portion

812,812

489,665

Operating lease liabilities, net of current portion

21,928

24,371

Deferred income taxes, net

42,095

37,269

Total non-current liabilities

950,073

614,621

Commitments and contingencies

Stockholders’ equity

Common stock; $0.01 par value; 500,000,000 shares authorized; 19,373,897 and 20,465,234 shares issued, respectively

194

205

Treasury stock, at cost, 3,407,005 and 3,269,301 shares, respectively

(210,434

)

(189,989

)

Additional paid-in capital

3,928

87,885

Retained earnings

599,378

636,693

Accumulated other comprehensive loss

(8,306

)

(6,165

)

Total stockholders’ equity

384,760

528,629

Total liabilities and stockholders’ equity

$

1,644,760

$

1,526,683

HURON CONSULTING GROUP INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Six Months Ended

June 30,

2026

2025

Cash flows from operating activities:

Net income

$

54,481

$

43,966

Adjustments to reconcile net income to cash flows from operating activities:

Depreciation and amortization

19,869

14,066

Non-cash lease expense

3,281

2,855

Lease-related impairment charges

—

738

Gain on lease modification

(4,063

)

—

Share-based compensation

28,663

25,757

Amortization of debt discount and issuance costs

577

571

Allowances for doubtful accounts

100

396

Deferred income taxes

1,592

399

Gain on sale of property and equipment

(486

)

—

Gain on sale of business

(303

)

—

Change in fair value of contingent consideration liabilities

7,690

(71

)

Change in fair value of equity investment

2,239

5,014

Change in credit allowance on convertible debt investment

(1,067

)

11,125

Changes in operating assets and liabilities, net of acquisitions:

(Increase) decrease in receivables from clients, net

(11,139

)

5,494

(Increase) decrease in unbilled services, net

(38,853

)

(26,945

)

(Increase) decrease in current income tax receivable / payable, net

(6,849

)

(17,161

)

(Increase) decrease in other assets

(9,934

)

(6,051

)

Increase (decrease) in accounts payable and other liabilities

2,138

4,063

Increase (decrease) in accrued payroll and related benefits

(88,680

)

(91,280

)

Increase (decrease) in deferred revenues

(958

)

284

Net cash used in operating activities

(41,702

)

(26,780

)

Cash flows from investing activities:

Purchases of property and equipment

(10,925

)

(3,892

)

Investments in life insurance policies

—

(2,312

)

Purchases of businesses, net of cash acquired

(27,790

)

(53,111

)

Capitalization of internally developed software costs

(10,065

)

(10,919

)

Origination of note receivable

(2,000

)

—

Proceeds from note receivable

2,250

154

Proceeds from sale of property and equipment

500

—

Proceeds from divestiture of business

300

—

Net cash used in investing activities

(47,730

)

(70,080

)

Cash flows from financing activities:

Proceeds from exercises of stock options

761

2,591

Shares redeemed for employee tax withholdings

(20,812

)

(32,507

)

Share repurchases

(206,652

)

(134,369

)

Proceeds from bank borrowings

579,000

552,000

Repayments of bank borrowings

(256,000

)

(251,875

)

Deferred payments for business acquisitions

—

(36

)

Net cash provided by financing activities

96,297

135,804

Effect of exchange rate changes on cash

(145

)

156

Net increase in cash and cash equivalents

6,720

39,100

Cash and cash equivalents at beginning of the period

24,508

21,911

Cash and cash equivalents at end of the period

$

31,228

$

61,011

HURON CONSULTING GROUP INC.

SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA

(Unaudited)

Three Months Ended

June 30,

Percent

Increase

(Decrease)

Six Months Ended

June 30,

Percent

Increase

(Decrease)

Segment and Consolidated Operating Results (in thousands):

2026

2025

2026

2025

Healthcare:

Revenues before reimbursable expenses

$

232,303

$

197,822

17.4

%

$

457,504

$

396,312

15.4

%

Operating income

$

69,902

$

59,651

17.2

%

$

133,855

$

115,967

15.4

%

Segment operating margin

30.1

%

30.2

%

29.3

%

29.3

%

Education:

Revenues before reimbursable expenses

$

139,375

$

129,301

7.8

%

$

266,843

$

252,049

5.9

%

Operating income

$

37,416

$

32,329

15.7

%

$

64,994

$

55,389

17.3

%

Segment operating margin

26.8

%

25.0

%

24.4

%

22.0

%

Commercial:

Revenues before reimbursable expenses

$

93,958

$

75,382

24.6

%

$

185,001

$

149,834

23.5

%

Operating income

$

19,752

$

12,507

57.9

%

$

34,648

$

23,803

45.6

%

Segment operating margin

21.0

%

16.6

%

18.7

%

15.9

%

Total Huron:

Revenues before reimbursable expenses

$

465,636

$

402,505

15.7

%

$

909,348

$

798,195

13.9

%

Reimbursable expenses

9,406

9,250

1.7

%

17,461

17,701

(1.4

)%

Total revenues

$

475,042

$

411,755

15.4

%

$

926,809

$

815,896

13.6

%

Items not allocated at the segment level:

Unallocated corporate expenses

65,370

54,281

20.4

%

125,400

106,652

17.6

%

Other losses (gains)

3,850

(71

)

N/M

7,690

(71

)

N/M

Restructuring charges

562

455

23.5

%

30

1,847

(98.4

)%

Depreciation and amortization

7,040

4,168

68.9

%

13,546

8,345

62.3

%

Operating income

50,248

45,654

10.1

%

86,831

78,386

10.8

%

Other expense, net

(7,340

)

(17,946

)

(59.1

)%

(16,857

)

(29,226

)

(42.3

)%

Income before taxes

$

42,908

$

27,708

54.9

%

$

69,974

$

49,160

42.3

%

Other Operating Data:

Number of revenue-generating professionals by segment (at period end)(1):

Healthcare(4)

1,738

1,483

17.2

%

1,738

1,483

17.2

%

Education(5)

1,070

1,192

(10.2

)%

1,070

1,192

(10.2

)%

Commercial(2)(3)(4)

2,527

2,311

9.3

%

2,527

2,311

9.3

%

Total (excluding Managed Services)

5,335

4,986

7.0

%

5,335

4,986

7.0

%

Managed Services(5)(6)

3,913

1,895

106.5

%

3,913

1,895

106.5

%

Total

9,248

6,881

34.4

%

9,248

6,881

34.4

%

Revenues before reimbursable expenses by capability:

Consulting and Managed Services(5)(7)

$

275,921

$

229,122

20.4

%

$

547,538

$

453,043

20.9

%

Digital

189,715

173,383

9.4

%

361,810

345,152

4.8

%

Total

$

465,636

$

402,505

15.7

%

$

909,348

$

798,195

13.9

%

Number of revenue-generating professionals by capability (at period end)(1):

Consulting(5)

2,198

1,889

16.4

%

2,198

1,889

16.4

%

Managed Services(5)(6)

3,913

1,895

106.5

%

3,913

1,895

106.5

%

Digital

3,137

3,097

1.3

%

3,137

3,097

1.3

%

Total

9,248

6,881

34.4

%

9,248

6,881

34.4

%

Utilization rate by capability(8):

Consulting

81.3

%

77.0

%

77.8

%

75.6

%

Digital

81.8

%

77.8

%

78.3

%

78.0

%

HURON CONSULTING GROUP INC.

RECONCILIATION OF NET INCOME

TO ADJUSTED EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION(9)

(In thousands)

(Unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Revenues before reimbursable expenses

$

465,636

$

402,505

$

909,348

$

798,195

Reimbursable expenses

9,406

9,250

17,461

17,701

Total revenues

$

475,042

$

411,755

$

926,809

$

815,896

Net income

$

31,234

$

19,430

$

54,481

$

43,966

Net income as a percentage of total revenues

6.6

%

4.7

%

5.9

%

5.4

%

Add back:

Income tax expense

11,674

8,278

15,493

5,194

Interest expense, net of interest income

11,939

9,281

20,830

14,928

Depreciation and amortization

10,408

7,318

20,366

14,467

Earnings before interest, taxes, depreciation and amortization (EBITDA)(9)

65,255

44,307

111,170

78,555

Add back:

Restructuring charges

410

560

1,073

1,898

Other losses (gains)(10)

3,850

(71

)

7,690

(71

)

Transaction-related expenses

1,868

3,590

2,691

4,886

Unrealized losses on long-term investments, net

1,172

11,929

1,172

16,139

Gain on sale of business

—

—

(303

)

—

Foreign currency transaction losses (gains), net

84

264

(263

)

663

Adjusted EBITDA(9)

$

72,639

$

60,579

$

123,230

$

102,070

Adjusted EBITDA as a percentage of revenues before reimbursable expenses(9)

15.6

%

15.1

%

13.6

%

12.8

%

HURON CONSULTING GROUP INC.

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME(9)

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net income

$

31,234

$

19,430

$

54,481

$

43,966

Weighted average shares - diluted

16,387

17,772

16,902

18,137

Diluted earnings per share

$

1.91

$

1.09

$

3.22

$

2.42

Add back:

Amortization of intangible assets

3,938

2,302

7,840

4,338

Restructuring charges

410

560

1,073

1,898

Other losses (gains)(10)

3,850

(71

)

7,690

(71

)

Transaction-related expenses

1,868

3,590

2,691

4,886

Unrealized losses on long-term investments, net

1,172

11,929

1,172

16,139

Gain on sale of business

—

—

(303

)

—

Tax effect of adjustments

(2,231

)

(4,075

)

(4,366

)

(6,384

)

Total adjustments, net of tax

9,007

14,235

15,797

20,806

Adjusted net income(9)

$

40,241

$

33,665

$

70,278

$

64,772

Adjusted weighted average shares - diluted

16,387

17,772

16,902

18,137

Adjusted diluted earnings per share(9)

$

2.46

$

1.89

$

4.16

$

3.57

(1)

Consists of our full-time consultants who generate revenues based on the number of hours worked; full-time equivalents, which consists of coaches and their support staff within the culture and organizational excellence solution, consultants who work variable schedules as needed by clients, and full-time employees who provide software support and maintenance services to clients; and our Managed Services professionals who provide revenue cycle, clinical and patient access managed services, research administration managed services and outsourcing at our healthcare, education and research-focused clients.

(2)

The majority of our revenue-generating professionals within our Commercial segment can provide services across all of our industries, including healthcare and education, and the related costs of these professionals are allocated to each of the segments.

(3)

The increase in the number of revenue-generating professionals within our Commercial segment includes the company's acquisition of Treliant in the third quarter of 2025. This acquisition added approximately 180 revenue-generating professionals, of which approximately 65 are consultants who work variable schedules as needed by clients.

(4)

During the first quarter of 2026, we reclassified the revenue-generating professionals within one of Commercial's Digital offerings to the same Digital offering within Healthcare as these revenue-generating professionals primarily provide services to clients in the healthcare industry. This reclassification had no impact on the total Huron headcount or RBR reported for any period.

The number of revenue-generating professionals within this offering as of December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025 and December 31, 2025 was 190, 158, 154, 154, and 145, respectively. The prior period headcount reported by segment in the table above has been revised for consistent presentation.

(5)

During the first quarter of 2026, we reclassified one of the offerings within Education's Managed Services capability to Education's Consulting capability. This reclassification had no impact on the total Huron headcount or RBR reported for any period.

The number of revenue-generating professionals within this offering as of December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025 and December 31, 2025 was 23, 22, 23, 21 and 21, respectively. The prior period headcount reported by segment and by capability in the table above has been revised for consistent presentation. The prior period Education Managed Services capability headcount in footnote (6) below has been revised for consistent presentation.

RBR generated by this offering during the quarters ended March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025 was $1.8 million, $1.4 million, $1.8 million, and $1.6 million, respectively, and during the years ended December 31, 2024 and 2025 was $7.3 million and $6.6 million, respectively. This reclassification did not impact the total Education Consulting and Managed Services RBR reported for any period, and the prior period Education Managed Services capability RBR in footnote (7) below has been revised for consistent presentation.

(6)

We have separately presented the total number of revenue-generating professionals within our Managed Services capabilities of our Healthcare and Education segments. Our Healthcare Managed Services professionals provide revenue cycle, clinical and patient access services from patient scheduling and clinical triage through billing and collections. Our Education Managed Services professionals provide research administration managed services and outsourcing at our education and research-focused clients.

The number of Managed Services professionals within our Healthcare segment was 3,794 and 1,807 as of June 30, 2026 and 2025, respectively. This increase includes the company's acquisition of RelateCare in the second quarter of 2026, which added approximately 1,100 Managed Services professionals.

The number of Managed Services professionals within our Education segment was 119 and 88 as of June 30, 2026 and 2025, respectively.

(7)

Managed Services capability RBR within our Healthcare segment was $34.4 million and $21.0 million for the three months ended June 30, 2026 and 2025, respectively; and $60.5 million and $39.3 million for the six months ended June 30, 2026 and 2025, respectively.

Managed Services capability RBR within our Education segment was $6.9 million and $6.0 million for the three months ended June 30, 2026 and 2025, respectively; and $12.8 million and $11.5 million for the six months ended June 30, 2026 and 2025, respectively.

(8)

Utilization rate is calculated by dividing the number of hours our billable consultants worked on client assignments during a period by the total available working hours for these billable consultants during the same period. Available working hours are determined by the standard hours worked by each billable consultant, adjusted for part-time hours, and U.S. standard work weeks. Available working hours exclude local country holidays and vacation days. Utilization rates are presented for our revenue-generating professionals who primarily bill on an hourly basis. We have not presented utilization rates for our Managed Services professionals as most of the revenues generated by these employees are not billed on an hourly basis.

(9)

In evaluating the company’s financial performance and outlook, management uses earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, adjusted EBITDA as a percentage of revenues before reimbursable expenses, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP financial measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing the company's business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron’s current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron’s current financial results with Huron’s past financial results. Investors should recognize that these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States.

(10)

The non-GAAP financial measures for the three and six months ended June 30, 2026 include an adjustment for $3.9 million and $7.7 million, respectively, of contingent consideration remeasurement charges to permit comparability with periods that are not impacted by these items. These remeasurement charges were recorded as a component of other losses (gains) on the consolidated statement of operations.

MEDIA CONTACT

Allie Bovis

[email protected]

INVESTOR CONTACT

John D. Kelly

[email protected]

Source: Huron

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