FCN — FTI Consulting, Inc.

FTI Consulting Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Full Year 2025 Results:
  • Record revenues of $3.79 billion, up 2.4% from 2024.
  • Record adjusted EBITDA of $463.6 million.
  • Record GAAP EPS of $8.24 and adjusted EPS of $8.83.
• Q4 2025 Results:
  • Revenues of $990.7 million, a 10.7% increase year-over-year.
  • Net income of $54.5 million, up 9.7% from Q4 2024.
  • GAAP EPS of $1.78, a 29% increase year-over-year.
  • Adjusted EBITDA of $106.2 million, representing 10.7% of revenues.

2. Strategic Updates and Business Highlights

• Segment Performance:
  • CorpFin: Revenues of $423.2 million, up 26.1%, driven by strong demand in turnaround and restructuring services.
  • FLC: Revenues of $192.9 million, up 9.7%, benefiting from higher bill rates in risk and investigation services.
  • Economic Consulting: Revenues decreased 14.5% to $176.2 million, impacted by lower demand for antitrust services.
  • Technology: Revenues of $99 million, up 9.3%, due to increased demand for litigation-related services.
  • Stratcom: Revenues of $99.4 million, up 14.8%, driven by corporate reputation services.
• Talent Investment: Announced 85 senior hires in 2025 with plans for further recruitment in 2026.

3. Forward Guidance and Outlook

• 2026 Guidance:
  • Revenue expected between $3.94 billion and $4.1 billion.
  • GAAP EPS projected between $8.90 and $9.50.
  • Anticipates 6.1% year-over-year growth at the midpoint of revenue guidance.
  • Expects challenges in the first half of 2026, particularly in Economic Consulting due to prior year disruptions.

4. Bad News, Challenges, or Points of Concern

• Headwinds:
  • Economic Consulting and Technology segments faced significant declines, contributing to nearly $100 million of adjusted EBITDA headwind.
  • Anticipated tough comparisons in the first half of 2026 due to prior year performance.
  • Increased SG&A expenses expected to rise $45 million in 2026, with Q1 anticipated to be $30 million higher than Q1 2025.
• Market Conditions: The company faces uncertainty from regulatory changes and market slowdowns, particularly in the Economic Consulting sector.

5. Notable Q&A Insights

• Economic Consulting: Management acknowledged ongoing struggles in the Economic Consulting segment, particularly due to the Compass Lexecon situation, with a slow ramp-up in productivity from new hires.
• AI Impact: Management views AI as a potential positive disruptor, creating new demand for their services, particularly in regulatory compliance and crisis management.
• Capital Deployment: The company remains committed to organic growth and opportunistic share buybacks, with a strong balance sheet allowing for flexibility in capital allocation.

Overall, FTI Consulting reported a record year despite facing significant challenges, particularly in certain segments. The outlook for 2026 includes cautious optimism with anticipated growth, although headwinds remain a concern.