0001289848-26-000082
SEC filingRBR grew 12.1% to $443.7M, driven by Healthcare and Commercial strength; adjusted EBITDA margin expanded 90bps to 11.4%.
In Q1 2026, Huron's revenues before reimbursable expenses (RBR) grew 12.1% to $443.7M, with organic growth of 7.3% after excluding $19.3M from recent acquisitions. Total revenues were $451.8M. Net income decreased 5.3% to $23.2M, primarily due to a $3.8M income tax expense versus a $3.1M benefit in the prior year, which reduced EPS by $0.22. Diluted EPS inched up to $1.34 from $1.33, aided by a 5.8% reduction in diluted shares from buybacks. Adjusted EBITDA rose 21.9% to $50.6M, and adjusted EBITDA margin on RBR expanded 90 bps to 11.4%, driven by operating leverage in consulting and managed services.
All three segments contributed to RBR growth. Healthcare RBR increased 13.5% to $225.2M, fueled by demand for performance improvement, revenue cycle managed services, and financial advisory. The segment's operating margin held steady at 28.4%, as revenue growth offset higher compensation costs. Education RBR grew 3.8% to $127.5M, driven by digital services (technology, analytics) and software products. Its operating margin improved sharply from 18.8% to 21.6%, reflecting lower consulting costs and expense discipline. Commercial RBR surged 22.3% to $91.0M, including $11.0M from the Treliant and WP&C acquisitions, with strong demand in financial advisory. Its operating margin rose to 16.4% from 15.2%, benefiting from contractor expense reductions and revenue scaling.
Management emphasized a strategy of margin expansion through growth in high-return segments, improved pricing, and operating efficiency. The balance sheet remains flexible, with $228.6M undrawn on the revolver and a leverage ratio of 3.14x. Cash used in operations was $162.2M in Q1 due to annual bonus payouts, but strong free cash flow is expected for the full year. No formal guidance was provided, but the focus on organic growth, digital capabilities, and strategic M&A positions Huron for continued margin improvement and shareholder returns.
As of March 31, 2026, Huron had $26.5M in cash and cash equivalents, down slightly from $24.5M at year-end 2025. Total debt surged to $854.7M from $509.7M, driven by $413M in revolver borrowings partially offset by $68M in repayments. The debt structure comprises a $471M revolver and $385M term loan. The weighted average interest rate was 5.2%. The company maintained compliance with financial covenants: leverage ratio of 3.14x (max 3.75x) and interest coverage of 7.57x (min 3.00x). Unused revolver capacity stood at $228.6M.
Remaining performance obligations (RPO) totaled $275.2M, with $86.2M expected in 2026, $75.0M in 2027, and $114.0M thereafter. Contingent consideration liabilities for acquisitions were $26.9M (fair value), with a maximum potential payout of $44.0M through December 2028. Letters of credit outstanding were $0.4M. Restructuring liabilities of $1.7M are expected to be paid within 12 months.
Huron repurchased 1,114,806 shares for $155.5M in Q1 2026, including excise tax. The board extended the share repurchase program through December 2026 and increased authorization to $900M; $144.6M remained available. No dividends were declared. Capital expenditures were $11.9M (2.7% of revenues), split between property/equipment ($5.7M) and capitalized software ($6.2M). Net debt increased significantly due to acquisition-related borrowings.
Huron reports three segments: Healthcare (51% of total revenues), Education (29%), and Commercial (20%). Healthcare grew 12.7% YoY to $229.2M, driven by organic growth and the Eclipse Insights acquisition. Education grew 3.7% to $129.6M; Commercial surged 22.6% to $93.0M, boosted by Treliant and WP&C acquisitions. Segment operating margins were 27.9% (Healthcare), 21.3% (Education), and 16.0% (Commercial). Revenue breakdown by capability: Consulting & Managed Services $276.1M (61%) and Digital $175.6M (39%). International operations were immaterial.