Press Releases July 30, 2026 07:30 AM

FTI Consulting Reports Second Quarter 2026 Financial Results

FTI Consulting Reports Record Q2 2026 Revenues with Mixed Earnings Performance and Adjusted EPS Guidance

By Leila Farooq
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FTI Consulting reported record second quarter 2026 revenues of $993.5 million, a 5.3% increase year-over-year driven by growth in Corporate Finance, Technology, and Forensic and Litigation Consulting segments. Despite higher revenues, net income decreased primarily due to increased costs, and GAAP EPS fell to $1.99 from $2.13 last year. Adjusted EPS increased slightly to $2.16. The company reaffirmed its full-year revenue guidance but updated its EPS guidance downward reflecting extraordinary litigation expenses. FTI repurchased 2.59 million shares at $150.84 each in Q2, increasing net debt. Segment performance varied, with Corporate Finance and Technology showing gains, while Economic Consulting revenues declined. Management remains confident about long-term prospects despite near-term challenges.

FTI Consulting Reports Second Quarter 2026 Financial Results
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Key Points

  • Record Q2 revenue growth of 5.3% reflects strong demand in Corporate Finance, Technology, and Forensic Consulting sectors impacting professional services and consulting markets.
  • Adjusted EPS slightly improved to $2.16 due to exclusion of extraordinary litigation expenses which impacted GAAP results, leading to narrowed EPS guidance reflecting legal uncertainties.
  • Robust capital allocation with $370 million additional stock repurchase authorization indicates strong shareholder return focus but also increased the company's net debt.
  • The professional services and consulting sectors, financial markets, and corporate transactions ecosystem are directly impacted by these results and outlook updates.
  • Record Second Quarter 2026 Revenues of $993.5 Million, Up 5.3% Compared to $943.7 Million in Prior Year Quarter
  • Second Quarter 2026 EPS of $1.99 and Adjusted EPS of $2.16, Compared to EPS and Adjusted EPS of $2.13 in Prior Year Quarter
  • Company Reaffirms Revenue Guidance, Updates EPS Guidance Range to Between $8.70 and $9.30 and Introduces Adjusted EPS Guidance Range of Between $9.10 and $9.70

WASHINGTON, July 30, 2026 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today released financial results for the second quarter ended June 30, 2026.

Second quarter 2026 record revenues of $993.5 million increased $49.8 million, or 5.3%, compared to revenues of $943.7 million in the prior year quarter. The increase was primarily driven by revenue growth in the Corporate Finance, Technology and Forensic and Litigation Consulting segments, which was partially offset by a $9.2 million decline in pass-through revenues. Net income of $57.8 million compared to $71.7 million in the prior year quarter. The decrease in net income was primarily due to higher direct costs, selling, general and administrative (“SG&A”) expenses and interest expense, which was partially offset by the increase in revenues and a lower income tax provision. Adjusted EBITDA of $104.5 million, or 10.5% of revenues, compared to $111.6 million, or 11.8% of revenues, in the prior year quarter. Second quarter 2026 Adjusted EBITDA excludes $6.6 million of Extraordinary Litigation-Related Expenses.1 Second quarter 2026 EPS of $1.99 compared to $2.13 in the prior year quarter. Second quarter 2026 EPS included the aforementioned Extraordinary Litigation-Related Expenses, which reduced EPS by $0.17. Second quarter Adjusted EPS of $2.16 compared to $2.13 in the prior year quarter.

Steven H. Gunby, CEO and Chairman of FTI Consulting, commented, “Our performance this quarter demonstrates, once again, the underlying power of this institution and the resilience created by our sustained, multiyear investments in great talent. As clients face ever more complicated and disrupted environments, the depth and breadth of our capabilities across our global platform are increasingly relevant. Though the event-driven nature of our business means we will always have zigs and zags someplace around the world, we continue to feel confident and excited about our multiyear trajectory.”

Cash Position and Capital Allocation

Net cash provided by operating activities of $152.3 million for the quarter ended June 30, 2026 compared to $55.7 million for the quarter ended June 30, 2025. The year-over-year increase in net cash provided by operating activities was primarily due to higher cash collections and a decrease in forgivable loan issuances and income tax payments, which was partially offset by an increase in operating expense and compensation payments.

On June 3, 2026, FTI Consulting’s Board of Directors authorized the additional amount of $370.0 million to repurchase its outstanding shares of common stock under its stock repurchase program. During the quarter ended June 30, 2026, the Company repurchased 2,591,133 shares of its common stock at an average price per share of $150.84 for a total cost of $390.9 million. As of June 30, 2026, approximately $344.0 million remained available for common stock repurchases under the Company’s stock repurchase program.

Cash and cash equivalents of $163.7 million at June 30, 2026 compared to $152.8 million at June 30, 2025 and $198.3 million at March 31, 2026. Total debt, net of cash, of $856.3 million at June 30, 2026 compared to $317.2 million at June 30, 2025 and $556.7 million at March 31, 2026. The sequential increase in total debt, net of cash, was primarily due to share repurchases.

Second Quarter 2026 Segment Results

Corporate Finance
Revenues in the Corporate Finance segment increased $32.2 million, or 8.5%, to $411.4 million in the quarter compared to $379.2 million in the prior year quarter. The increase in revenues was primarily due to higher realized bill rates for transactions, transformation and turnaround & restructuring services, an increase in demand for transformation services, and higher success fees, which was partially offset by lower demand for turnaround & restructuring services. Segment operating income of $82.5 million compared to $78.1 million in the prior year quarter. Adjusted Segment EBITDA of $86.0 million, or 20.9% of segment revenues, compared to $81.7 million, or 21.5% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, which includes the impact of a 7.8% increase in billable headcount, and higher SG&A expenses.

Forensic and Litigation Consulting
Revenues in the Forensic and Litigation Consulting segment increased $7.7 million, or 4.1%, to $194.3 million in the quarter compared to $186.5 million in the prior year quarter. The increase in revenues was primarily due to higher realized bill rates and demand for risk & investigations services, which was partially offset by lower demand for dispute advisory services. Segment operating income of $29.2 million compared to $29.1 million in the prior year quarter. Adjusted Segment EBITDA of $31.4 million, or 16.1% of segment revenues, compared to $31.2 million, or 16.7% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was nearly offset by an increase in compensation, which includes the impact of a 3.0% increase in billable headcount, and higher SG&A expenses.

Economic Consulting
Revenues in the Economic Consulting segment decreased $2.8 million, or 1.5%, to $188.8 million in the quarter compared to $191.7 million in the prior year quarter. The decrease in revenues was primarily due to lower demand for non-merger and acquisition (“M&A”)-related antitrust and international arbitration services, which was partially offset by higher demand for M&A-related antitrust services and higher realized bill rates for financial economics services. Segment operating income of $7.4 million compared to $12.8 million in the prior year quarter. Adjusted Segment EBITDA of $8.8 million, or 4.7% of segment revenues, compared to $14.2 million, or 7.4% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to lower revenues and higher compensation.

Technology
Revenues in the Technology segment increased $15.4 million, or 18.4%, to $99.0 million in the quarter compared to $83.6 million in the prior year quarter. The increase in revenues was primarily due to higher demand for M&A-related “second request” services, which was partially offset by lower demand for investigations services. Segment operating income of $4.8 million compared to $1.6 million in the prior year quarter. Adjusted Segment EBITDA of $9.1 million, or 9.1% of segment revenues, compared to $5.3 million, or 6.3% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, which includes higher as-needed consultant costs, and higher SG&A expenses.

Strategic Communications
Revenues in the Strategic Communications segment decreased $2.7 million, or 2.6%, to $100.0 million in the quarter compared to $102.7 million in the prior year quarter. The decrease in revenues was primarily due to a $7.4 million decline in pass-through revenues. Excluding pass-through revenues, revenues increased $4.7 million, or 5.4%, primarily due to higher demand for corporate reputation services. Segment operating income of $17.4 million compared to $17.5 million in the prior year quarter. Adjusted Segment EBITDA of $18.5 million, or 18.5% of segment revenues, compared to $18.5 million, or 18.0% of segment revenues, in the prior year quarter.

2026 Guidance
The Company is reaffirming its full year 2026 revenue guidance range of between $3.940 billion and $4.100 billion. The Company now estimates EPS for full year 2026 will range between $8.70 and $9.30, which compares to the prior range of between $8.90 and $9.60. The Company estimates Adjusted EPS will range between $9.10 and $9.70. The variance between EPS and Adjusted EPS guidance for full year 2026 includes an estimated $0.40 of Extraordinary Litigation-Related Expenses.

Second Quarter 2026 Conference Call
FTI Consulting will host a conference call for analysts and investors to discuss second quarter 2026 financial results at 9:00 a.m. Eastern Time on Thursday, July 30, 2026. The call can be accessed live and will be available for replay over the internet for 90 days by logging onto the Company’s investor relations website here.

About FTI Consulting
FTI Consulting, Inc. is a leading global expert firm for organizations facing crisis and transformation, with more than 8,100 employees located in 32 countries and territories as of June 30, 2026. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. The Company generated $3.8 billion in revenues during fiscal year 2025. More information can be found at www.fticonsulting.com.

Non-GAAP Financial Measures
In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Certain of these financial measures are considered not in conformity with GAAP ("non-GAAP financial measures") under the United States Securities and Exchange Commission ("SEC") rules. Specifically, we have referred to the following non-GAAP financial measures:

  • Adjusted Segment EBITDA
  • Adjusted EBITDA
  • Adjusted EBITDA Margin
  • Adjusted Net Income
  • Adjusted Earnings per Diluted Share

We have included the definition of Segment Operating Income, which is a GAAP financial measure, below in order to more fully define the components of certain non-GAAP financial measures in the accompanying analysis of financial information. We define Segment Operating Income as a segment’s share of consolidated operating income. We use Segment Operating Income for the purpose of calculating Adjusted Segment EBITDA, which is a non-GAAP financial measure. We define Adjusted Segment EBITDA as Segment Operating Income before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects core operating performance and provides an indicator of the segment’s ability to generate cash.

We define Adjusted EBITDA, which is a non-GAAP financial measure, as consolidated net income before income tax provision, other non-operating income (expense), depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, gain or loss on sale of a business, losses on early extinguishment of debt and Extraordinary Litigation-Related Expenses (as defined below). We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA as a percentage of total revenues. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. Many of our competitors use alternative measures of operating performance. Non-GAAP financial measures are used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry. Therefore, we also believe that our non-GAAP financial measures, considered along with corresponding GAAP financial measures, provide management and investors with useful supplemental information.

We define Adjusted Net Income and Adjusted Earnings per Diluted Share ("Adjusted EPS"), which are non-GAAP financial measures, as net income and EPS, respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, the gain or loss on sale of a business, losses on early extinguishment of debt and Extraordinary Litigation-Related Expenses (as defined below). We use Adjusted Net Income for the purpose of calculating Adjusted EPS. Management uses Adjusted EPS to assess total Company operating performance on a consistent basis. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with useful supplemental information on our business operating results, including underlying trends.

“Extraordinary Litigation-Related Expenses” represent expenses related to the Company’s litigation in the case captioned FTI Consulting, Inc. et al., v. Jonathan M. Orszag et al., 8:23-cv-03200-BAH-AAQ (D.Md.) (together with ancillary proceedings, “FTI vs. Orszag, et al”). In May 2026, the United States District Court for the District of Maryland (the “Court”) allowed the Company to file a third amended complaint to an existing proceeding against Jonathan Orszag, adding Econic Partners LLC, a competitor of the Company, and Dr. Mark Israel, a former Company employee, as defendants. The third amended complaint also added additional claims, including for theft of Company trade secrets and conspiracy to unlawfully compete. This litigation was originally filed in November 2023 against Mr. Orszag, a former Company employee, to enforce the terms of his employment agreement. As a result of the Court’s allowance of the third amended complaint, in the Company’s judgment, beginning in the second quarter of 2026, FTI vs Orszag, et al became non-recurring and outside of the ordinary course of business based on the following considerations: (i) the magnitude of the proceedings, (ii) the complexity of the proceedings, (iii) the counterparties involved and (iv) the Company’s overall litigation strategy. No non-GAAP financial measures for prior periods presented have been adjusted for litigation expenses related to FTI vs. Orszag, et al because the proceedings did not become extraordinary until the second quarter of 2026.

Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Comprehensive Income. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Safe Harbor Statement

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact, including among other things, statements about future events, anticipated growth, industry prospects, business trends, our future results of operations and financial position, business strategy and plans, future revenues or performance, financing needs, and objectives of management for future operations, are forward-looking statements. Forward-looking statements often contain words such as “may,” “might,” “will,” “should,” “could,” “would,” “estimates,” “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “commits,” “aspires,” “forecasts,” “future,” “goal,” “seeks” and variations of such words or similar expressions. There are a number of risks, uncertainties and other factors that could cause our actual results or outcomes, and the timing of our results or outcomes, to differ materially from the forward-looking statements expressed or implied by this press release. Although we believe that the expectations and assumptions reflected in these forward-looking statements are reasonable, we can provide no assurance that these expectations and assumptions will prove to be correct. Forward-looking statements relate to future events, results and outcomes and are inherently uncertain. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements. Important factors that could cause our actual results or outcomes, and the timing of our results and outcomes, to differ materially from the forward-looking statements we make in this press release include those set forth under the heading “Risk Factors” in Part I, Item 1A in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 26, 2026 as well as in other information that we file with the SEC from time to time. All forward-looking statements are presented as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included herein. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statement for any reason.

Investor & Media Contact:
Mollie Hawkes
+1.617.747.1791
[email protected]

FINANCIAL TABLES FOLLOW

 FTI CONSULTING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
   June 30, December 31,   2026   2025   (Unaudited)  Assets    Current assets    Cash and cash equivalents $163,747  $265,091 Accounts receivable, net  1,158,395   1,037,678 Current portion of notes receivable  93,867   87,861 Prepaid expenses and other current assets  170,660   126,997    Total current assets  1,586,669   1,517,627 Property and equipment, net  163,781   169,333 Operating lease assets  190,444   201,492 Goodwill  1,239,753   1,242,777 Intangible assets, net  12,376   13,547 Notes receivable, net  241,628   250,667 Other assets  100,074   95,085    Total assets $3,534,725  $3,490,528 Liabilities and Stockholders’ Equity    Current liabilities    Accounts payable, accrued expenses and other $219,316  $206,247 Accrued compensation  505,269   712,335 Billings in excess of services provided  57,802   56,607    Total current liabilities  782,387   975,189 Long-term debt, net  1,019,320   365,000 Noncurrent operating lease liabilities  208,661   224,510 Deferred income taxes  98,913   99,611 Other liabilities  91,494   92,487    Total liabilities  2,200,775   1,756,797 Stockholders’ equity    Preferred stock, $0.01 par value; shares authorized — 5,000; none
outstanding  —   — Common stock, $0.01 par value; shares authorized — 75,000; shares
issued and outstanding — 27,711 (2026) and 30,864 (2025)  277   309 Additional paid-in capital  —   354 Retained earnings  1,473,529   1,862,672 Accumulated other comprehensive loss  (139,856)  (129,604)   Total stockholders’ equity  1,333,950   1,733,731       Total liabilities and stockholders’ equity $3,534,725  $3,490,528          


FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
   Three Months Ended
June 30,
   2026   2025  (Unaudited)Revenues$993,464  $943,662 Operating expenses   Direct cost of revenues 677,191   641,141 Selling, general and administrative expenses 230,713   202,204 Amortization of intangible assets 539   1,053   908,443   844,398 Operating income 85,021   99,264 Other income (expense)   Interest income and other (401)  (2,068)Interest expense (11,630)  (5,257)  (12,031)  (7,325)Income before income tax provision 72,990   91,939 Income tax provision 15,180   20,241 Net income$57,810  $71,698 Earnings per common share ― basic$2.01  $2.16 Weighted average common shares outstanding ― basic 28,739   33,261 Earnings per common share ― diluted$1.99  $2.13 Weighted average common shares outstanding ― diluted 29,038   33,591 Other comprehensive income (loss), net of tax   Foreign currency translation adjustments, net of tax expense of $0$(199) $33,773 Total other comprehensive income (loss), net of tax (199)  33,773 Comprehensive income$57,611  $105,471         


FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands, except per share data)
   Six Months Ended
June 30,
   2026   2025  (Unaudited)Revenues$1,976,809  $1,841,944 Operating expenses   Direct cost of revenues 1,353,709   1,250,069 Selling, general and administrative expenses 453,011   386,539 Special charges —   25,295 Amortization of intangible assets 1,151   2,070   1,807,871   1,663,973 Operating income 168,938   177,971 Other income (expense)   Interest income and other 673   774 Interest expense (18,075)  (6,225)  (17,402)  (5,451)Income before income tax provision 151,536   172,520 Income tax provision 36,095   38,998 Net income$115,441  $133,522 Earnings per common share ― basic$3.93  $3.91 Weighted average common shares outstanding ― basic 29,358   34,152 Earnings per common share ― diluted$3.89  $3.87 Weighted average common shares outstanding ― diluted 29,680   34,541 Other comprehensive income (loss), net of tax   Foreign currency translation adjustments, net of tax expense of $0$(10,252) $48,347 Total other comprehensive income (loss), net of tax (10,252)  48,347 Comprehensive income$105,189  $181,869         


FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND EPS TO ADJUSTED EPS
(in thousands, except per share data)
       Three Months Ended
June 30,
 Six Months Ended
June 30,      2026   2025  2026   2025   (Unaudited) (Unaudited)Net income $57,810  $71,698 $115,441  $133,522 Add back:        Special charges  —   —  —   25,295 Tax impact of special charges  —   —  —   (5,799)Extraordinary Litigation-Related Expenses(1)  6,623   —  6,623   — Tax impact of Extraordinary Litigation-Related
Expenses(1)  (1,694)  —  (1,694)  — Adjusted Net Income $62,739  $71,698 $120,370  $153,018 EPS $1.99  $2.13 $3.89  $3.87 Add back:        Special charges  —   —  —   0.73 Tax impact of special charges  —   —  —   (0.17)Extraordinary Litigation-Related Expenses(1)  0.23   —  0.23   — Tax impact of Extraordinary Litigation-Related
Expenses(1)  (0.06)  —  (0.06)  — Adjusted EPS $2.16  $2.13 $4.06  $4.43 Weighted average number of common shares
outstanding ― diluted  29,038   33,591  29,680   34,541 _______________               (1) Refer to “Non-GAAP Financial Measures” in this Press Release for the definition of “Extraordinary Litigation-Related Expenses.”
 


FTI CONSULTING, INC.
RECONCILIATION OF EPS GUIDANCE TO ADJUSTED EPS GUIDANCE
   Year Ended December 31, 2026  Low HighGuidance on estimated earnings per common sharediluted (GAAP)(1) $8.70  $9.30 Extraordinary Litigation-Related Expenses(2)  0.54   0.54 Tax impact of Extraordinary Litigation-Related Expenses(2)  (0.14)  (0.14)Guidance on estimated adjusted earnings per common share (non-GAAP)(1) $9.10  $9.70 _______________        (1) The forward-looking guidance on estimated 2026 EPS and Adjusted EPS does not reflect other gains and losses (all of which would be excluded from Adjusted EPS) related to the future impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, the gain or loss on sale of a business or losses on early extinguishment of debt, as these items are dependent on future events that are uncertain and difficult to predict.
(2) Refer to “Non-GAAP Financial Measures” in this Press Release for the definition of “Extraordinary Litigation-Related Expenses.”
 


FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED SEGMENT EBITDA AND ADJUSTED EBITDA
(in thousands)               Three Months Ended June 30, 2026
(Unaudited) Corporate Finance Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Unallocated Corporate TotalNet income             $57,810 Interest income and other              401 Interest expense              11,630 Income tax provision              15,180 Operating income $82,475 $29,215 $7,444 $4,813 $17,390 $(56,316) $85,021 Depreciation of property and equipment  3,208  1,949  1,360  4,237  1,038  487   12,279 Amortization of intangible assets  280  190  —  —  69  —   539 Extraordinary Litigation-Related
Expenses(1)  —  —  —  —  —  6,623   6,623 Adjusted EBITDA $85,963 $31,354 $8,804 $9,050 $18,497 $(49,206) $104,462                Six Months EndedJune 30, 2026
(Unaudited) Corporate Finance Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Unallocated Corporate TotalNet income             $115,441 Interest income and other              (673)Interest expense              18,075 Income tax provision              36,095 Operating income $167,705 $52,300 $113 $12,516 $38,228 $(101,924) $168,938 Depreciation of property and equipment  6,313  3,899  2,809  8,367  2,022  1,158   24,568 Amortization of intangible assets  595  419  —  —  137  —   1,151 Extraordinary Litigation-Related
Expenses(1)  —  —  —  —  —  6,623   6,623 Adjusted EBITDA $174,613 $56,618 $2,922 $20,883 $40,387 $(94,143) $201,280  _______________(1) Refer to “Non-GAAP Financial Measures” in this Press Release for the definition of “Extraordinary Litigation-Related Expenses.”
 


FTI CONSULTING, INC.
RECONCILIATION OF NET INCOME AND OPERATING INCOME TO ADJUSTED SEGMENT EBITDA AND ADJUSTED EBITDA
(in thousands)               Three Months Ended June 30, 2025
(Unaudited) Corporate Finance Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Unallocated Corporate TotalNet income             $71,698 Interest income and other              2,068 Interest expense              5,257 Income tax provision              20,241 Operating income $78,128 $29,071 $12,807 $1,560 $17,474 $(39,776) $99,264 Depreciation of property and equipment  2,768  1,889  1,376  3,724  938  628   11,323 Amortization of intangible assets  756  228  —  —  69  —   1,053 Adjusted EBITDA $81,652 $31,188 $14,183 $5,284 $18,481 $(39,148) $111,640                Six Months EndedJune 30, 2025
(Unaudited) Corporate Finance Forensic and Litigation Consulting Economic Consulting Technology Strategic Communications Unallocated Corporate TotalNet income             $133,522 Interest income and other              (774)Interest expense              6,225 Income tax provision              38,998 Operating income $119,078 $59,177 $24,896 $8,154 $26,199 $(59,533) $177,971 Depreciation of property and equipment  5,350  3,602  2,735  6,794  1,779  1,208   21,468 Amortization of intangible assets  1,475  457  —  —  138  —   2,070 Special charges  11,696  5,475  983  1,928  3,268  1,945   25,295 Adjusted EBITDA $137,599 $68,711 $28,614 $16,876 $31,384 $(56,380) $226,804                         


FTI CONSULTING, INC.
OPERATING RESULTS BY BUSINESS SEGMENT             Segment
Revenues Adjusted
EBITDA Adjusted EBITDA
Margin Utilization Average
Billable
Rate Billable
Headcount (in thousands)       (at period end)Three Months Ended June 30, 2026
(Unaudited)           Corporate Finance$411,399 $85,963  20.9% 59% $553 2,358Forensic and Litigation Consulting 194,254  31,354  16.1% 54% $465 1,527Economic Consulting 188,812  8,804  4.7% 61% $633 970Technology(1) 99,017  9,050  9.1% N/M N/M 641Strategic Communications(1) 99,982  18,497  18.5% N/M N/M 913 $993,464 $153,668  15.5%     6,409Unallocated Corporate   (49,206)        Adjusted EBITDA  $104,462  10.5%                  Six Months EndedJune 30, 2026
(Unaudited)           Corporate Finance$820,901 $174,613  21.3% 60% $549 2,358Forensic and Litigation Consulting 387,132  56,618  14.6% 56% $458 1,527Economic Consulting 364,460  2,922  0.8% 61% $605 970Technology(1) 201,340  20,883  10.4% N/M N/M 641Strategic Communications(1) 202,976  40,387  19.9% N/M N/M 913 $1,976,809 $295,423  14.9%     6,409Unallocated Corporate   (94,143)        Adjusted EBITDA  $201,280  10.2%                  Three Months Ended June 30, 2025
(Unaudited)           Corporate Finance$379,239 $81,652  21.5% 61% $532 2,188Forensic and Litigation Consulting 186,517  31,188  16.7% 57% $439 1,482Economic Consulting 191,657  14,183  7.4% 64% $593 991Technology(1) 83,599  5,284  6.3% N/M N/M 655Strategic Communications(1) 102,650  18,481  18.0% N/M N/M 892 $943,662 $150,788  16.0%     6,208Unallocated Corporate   (39,148)        Adjusted EBITDA  $111,640  11.8%                  Six Months EndedJune 30, 2025
(Unaudited)           Corporate Finance$722,884 $137,599  19.0% 59% $513 2,188Forensic and Litigation Consulting 377,119  68,711  18.2% 58% $434 1,482Economic Consulting 371,518  28,614  7.7% 63% $566 991Technology(1) 180,755  16,876  9.3% N/M N/M 655Strategic Communications(1) 189,668  31,384  16.5% N/M N/M 892 $1,841,944 $283,184  15.4%     6,208Unallocated Corporate   (56,380)        Adjusted EBITDA  $226,804  12.3%       _______________           N/M   Not meaningful(1) The majority of the Technology and Strategic Communications segments' revenues are not generated based on billable hours. Accordingly, utilization and average billable rate metrics are not presented as they are not meaningful as a segment-wide metric.  


FTI CONSULTING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
  Six Months Ended
June 30,
   2026   2025  (Unaudited)Operating activities   Net income$115,441  $133,522 Adjustments to reconcile net income to net cash used in operating activities:   Depreciation of property and equipment 24,568   21,468 Amortization of intangible assets 1,151   2,070 Amortization of notes receivable 46,039   30,445 Amortization of tax equity investment 16,881   — Provision for expected credit losses 14,111   11,909 Share-based compensation 22,051   19,671 Deferred income taxes 4,976   17,506 Other 1,677   159 Changes in operating assets and liabilities, net of effects from acquisitions:   Accounts receivable, billed and unbilled (141,633)  (91,734)Notes receivable, net of repayments (44,010)  (234,081)Prepaid expenses and other assets (6,579)  (13,224)Accounts payable, accrued expenses and other (2,488)  (11,623)Income taxes (14,256)  (84,105)Accrued compensation (197,047)  (204,284)Billings in excess of services provided 1,389   (7,216)   Net cash used in operating activities (157,729)  (409,517)Investing activities   Purchases of property and equipment and other (21,885)  (35,228)Payment for tax equity investment (42,101)  —    Net cash used in investing activities (63,986)  (35,228)Financing activities   Borrowings under revolving line of credit 1,085,000   745,000 Repayments under revolving line of credit (730,000)  (275,000)Proceeds from issuance of term loan 300,000   — Payments of debt issuance costs (5,401)  — Purchase and retirement of common stock, including excise tax (520,037)  (536,678)Share-based compensation tax withholdings (8,103)  (16,880)Deposits and other 3,053   (636)   Net cash provided by (used in) financing activities 124,512   (84,194)Effect of exchange rate changes on cash and cash equivalents (4,141)  21,277 Net decrease in cash and cash equivalents (101,344)  (507,662)Cash and cash equivalents, beginning of period 265,091   660,493 Cash and cash equivalents, end of period$163,747  $152,831         

1 Refer to “Non-GAAP Financial Measures” in this Press Release for the definition of “Extraordinary Litigation-Related Expenses.”


Risks

  • Ongoing extraordinary litigation involving a competitor and former employee introduces legal and financial uncertainty, potentially impacting future earnings and reputation.
  • Higher operating costs, including interest expenses and compensation, pressure net income and segment profitability, suggesting risks if revenue growth slows.
  • Economic Consulting segment shows revenue decline due to lower demand for certain antitrust and arbitration services, indicating sensitivity to market and legal activity fluctuations.

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