0001193125-26-201565
SEC filingFTI Consulting reported Q1 2026 revenues of $983.3 million, up 9.5% year-over-year, with EPS of $1.90, and reaffirmed full-year 2026 guidance of $3.94-$4.10 billion in revenue and $8.90-$9.60 EPS.
FTI Consulting delivered solid top-line growth in Q1 2026 with revenues reaching $983.3 million, a 9.5% increase from $898.3 million in the prior year quarter, primarily fueled by strong performances in Corporate Finance (up 19.2% to $409.5 million on robust demand in turnaround & restructuring, transactions, and transformation), Strategic Communications (up 18.4% to $103.0 million driven by corporate reputation, public affairs, and financial communications), and Technology (up 5.3%). These gains were partially offset by a 2.3% decline in Economic Consulting to $175.6 million, attributed to lower non-M&A antitrust demand and challenges in Compass Lexecon, and modest 1.2% growth in Forensic and Litigation Consulting. Excluding FX, organic revenue growth was 6.8%.
Despite revenue growth, profitability faced headwinds. GAAP net income fell 6.8% to $57.6 million, with diluted EPS of $1.90 up 9.2% from $1.74, aided by a 14.6% reduction in weighted average shares outstanding to 30.3 million due to share repurchases. Adjusted EBITDA declined 15.9% to $96.8 million (9.8% margin vs. 12.8%), reflecting higher direct costs ($676.5 million, up due to compensation including variable pay and forgivable loans), SG&A ($222.3 million or 22.6% of revenues, up from legal settlements in prior year), elevated interest expense ($6.4 million), and a 26.6% effective tax rate (vs. 23.3%). No special charges were recorded this quarter, unlike $25.3 million in Q1 2025.
Segment margins varied: Corporate Finance's adjusted EBITDA margin expanded to 21.6% on revenue leverage, Strategic Communications hit a record 21.3%, while Economic Consulting posted a (3.3)% loss and FLC fell to 13.1% amid hiring costs and bad debt. CEO Steve Gunby highlighted momentum from overcoming 2024-2025 challenges, strong talent acquisition (29 senior hires YTD), and a positive all-SMD meeting reinforcing growth conviction, though noting Compass Lexecon turnaround and FLC lumpiness. Management reaffirmed FY2026 guidance ($3.94-$4.10B revenue, $8.90-$9.60 EPS), expecting SG&A $60M higher, Q2 SG&A peak, and junior hiring ramp in H2. Cash use was typical for bonus payments ($310M operating cash outflow, better than $465M prior), with $127M share repurchases and debt net of cash at $557M after $300M term loan and revolver activity.