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Mar 31
FTI Consulting Q1 2025 Earnings Report
FTI Consulting reported a year-over-year decline in revenue and net income, impacted by restructuring charges.
Key Takeaways
FTI Consulting's Q1 2025 performance reflected a modest decline in revenue and earnings, largely due to special charges from workforce realignment. Despite this, Adjusted EPS increased slightly year-over-year, supported by lower SG&A and strong performance in Forensic & Litigation and Strategic Communications segments.
Revenue declined 3% YoY due to lower demand in Corporate Finance and Economic Consulting.
Adjusted EPS rose to $2.29 despite a $25.3M special charge.
Net income fell to $61.8M, down from $80.0M YoY.
The company expanded its stock repurchase authorization by $400M.
FTI Consulting
FTI Consulting
FTI Consulting Revenue by Segment
Revenue by Segment
Corporate Finance & Restructuring Revenue
CapyFin.comForensic and Litigation Consulting Revenue
CapyFin.comEconomic Consulting Revenue
CapyFin.comTechnology Revenue
CapyFin.comStrategic Communications Revenue
CapyFin.com Forward Guidance
No specific financial guidance issued, but cost-saving initiatives are expected to contribute positively to future profitability.
Positive Outlook
- Adjusted EPS improved despite special charges.
- Forensic & Litigation and Strategic Communications segments posted revenue growth.
- Higher realized bill rates in several segments.
- SG&A and direct costs were lower YoY.
- Annualized cost savings of $85M expected from recent layoffs.
Challenges Ahead
- Revenue and net income declined YoY.
- Special charge of $25.3M impacted profitability.
- Economic Consulting and Corporate Finance saw reduced demand.
- Free cash flow turned negative due to loan issuances and compensation payouts.
- Cash position declined significantly from previous quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income