In This Article:
FTI Consulting, Inc. FCN reported mixed first-quarter 2025 results. Earnings beat the Zacks Consensus Estimate, while revenues lagged the same.
Quarterly adjusted earnings per share of $2.29 beat the Zacks Consensus Estimate by 27.9% and increased 2.7% from the year-ago quarter’s actual. The company reported revenues of $898.3 billion, which lagged the consensus estimate by 0.3% and decreased 3.3% on a year-over-year basis.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
FTI Consulting, Inc. price-consensus-eps-surprise-chart | FTI Consulting, Inc. Quote
FTI Consulting shares have risen 4.5% in response to its earnings beat, outperforming the 0.8% decline of the industry.
Image Source: Zacks Investment Research
FCN’s Segmental Performance
Technology revenues decreased 3.5% year over year to $97.2 million. The decline was primarily due to lower demand for merger and acquisition (M&A)-related “second request” services.
Economic Consulting revenues dropped 12.1% year over year to $179.9 million due to lower demand for merger and acquisition (“M&A”)-related antitrust, financial economics and non-M&A-related antitrust services, partially offset by higher realized bill rates.
Corporate Finance & Restructuring revenues declined 6.1% year over year to $343.6 million. The decrease in revenues was primarily due to lower demand and realized bill rates for transformation & strategy and transactions services.
Strategic Communications revenues increased 7.2% year over year to $87 million. The rise in revenues was primarily due to a $3.5 million jump in pass-through revenues and higher demand for corporate reputation services.
Forensic and Litigation Consulting revenues rose 8.3% year over year to $190.6 million. Acquisition-related revenues contributed $1.3 million in the quarter. Excluding acquisition-related revenues, higher realized bill rates for risk and investigations services, along with increased bill rates and demand for data & analytics services, primarily drove the increase in revenues.
FCN’s Margins Expand
Adjusted EBITDA came in at $115.2 million, up 3.7% on a year-over-year basis. The adjusted EBITDA margin declined 80 basis points year over year to 12.8%.
FCN’s Balance Sheet and Cash Flow Figures
FTI Consulting exited the quarter with a cash and cash equivalent balance of $151.1 million compared with the prior quarter’s $660.5 million. FCN generated $465.2 million of cash from operating activities in the quarter. The capital expenditure was $17.8 million.
FCN’s Guidance
The company expects its SG&A to be approximately $15 million to $20 million higher in each of the next two quarters than in the first quarter of 2025.