Huron: Huron Consulting : Financial Report (huron announces first quarter 2025 financial results and)

FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS Revenues before reimbursable expenses increased $39.7 million, or 11.2%, to a record $395.7 million in Q1 2025 from $356.0 million in Q1 2024. Net income increased $6.5 million, or 36.3%, to $24.5 million in Q1 2025, compared to $18.0 million in Q1 2024. Adjusted EBITDA (6) , a non-GAAP measure, increased $7.7 million, or 22.7%, to $41.5 million in Q1 2025 from $33.8 million in Q1 2024. Diluted earnings per share increased $0.38, or 40.0%, to $1.33 in Q1 2025, compared to $0.95 in Q1 2024. Adjusted diluted earnings per share (6) , a non-GAAP measure, increased $0.45, or 36.6%, to $1.68 in Q1 2025 from $1.23 in Q1 2024. Huron returned $72.9 million to shareholders by repurchasing 0.5 million shares of the company's common stock in Q1 2025, representing 2.9% of the company's common stock outstanding as of December 31, 2024. Huron reaffirms its previous guidance for full year 2025, including revenues before reimbursable expenses expectations in a range of $1.58 billion to $1.66 billion. OTHER HIGHLIGHTS Huron has recently been Certified by Great Place To Work® in the United States, Canada, India, Singapore, and the United Kingdom. Huron posted its Investor Day Presentation on its investor relations website, which outlines the company's refreshed growth strategy and financial goals through 2029. CHICAGO--(BUSINESS WIRE)--Apr. 29, 2025-- Global professional services firm Huron (Nasdaq: HURN) today announced financial results for the quarter ended March 31, 2025. "Driven by strong growth across all three operating segments, revenues before reimbursable expenses (RBR) grew 11% over the first quarter of 2024, while we continued to expand our margins," said Mark Hussey , chief executive officer and president of Huron . "We are encouraged by our performance in the first quarter in the face of a dynamic external environment, and today we reaffirm our annual RBR and margin guidance. Our strong client relationships, incredibly talented team, deep industry expertise, and breadth of capabilities, including performance improvement offerings, collectively position us well to serve our clients as they navigate an evolving regulatory landscape and continued market disruption," added Hussey . FIRST QUARTER 2025 RESULTS Revenues before reimbursable expenses increased $39.7 million, or 11.2%, to $395.7 million for the first quarter of 2025, compared to $356.0 million for the first quarter of 2024. This growth reflects strength in demand for the company's Consulting and Managed Services capabilities within the Healthcare and Education segments; and an increase in demand for the company's Digital capabilities of the Commercial and Education segments, including $11.9 million of incremental revenues before reimbursable expenses from the company's acquisition of AXIA Consulting, Inc. in December 2024. These increases were partially offset by a decrease in demand for the company's Consulting and Managed Services capability within the Commercial segment. Net income increased $6.5 million, or 36.3%, to $24.5 million, or 6.1% of total revenues, for the first quarter of 2025, compared to $18.0 million, or 5.0% of total revenues, for the same quarter last year. Diluted earnings per share increased $0.38, or 40.0%, to $1.33 for the first quarter of 2025, compared to $0.95 for the first quarter of 2024. First quarter 2025 earnings before interest, taxes, depreciation and amortization ("EBITDA") (6) increased $5.4 million, or 18.6%, to $34.2 million, compared to $28.9 million in the same prior year period. In addition to using EBITDA to evaluate the company's financial performance, management uses other non-GAAP financial measures, which exclude the effect of the following items (in thousands). Three Months Ended March 31 , 2025 2024 Amortization of intangible assets $ 2,036 $ 1,690 Restructuring charges $ 1,338 $ 2,337 Other losses $ - $ 1,568 Transaction-related expenses $ 1,296 $ 1,497 Unrealized loss on preferred stock investment (7) $ 4,210 $ - Tax effect of adjustments $ (2,309 ) $ (1,844 ) Foreign currency transaction losses (gains), net $ 399 $ (465 ) Adjusted EBITDA (6) increased $7.7 million, or 22.7%, to $41.5 million, or 10.5% of revenues before reimbursable expenses (6) , in the first quarter of 2025, compared to $33.8 million, or 9.5% of revenues before reimbursable expenses (6) , in the same quarter last year. Adjusted net income (6) increased $7.9 million, or 33.8%, to $31.1 million, or $1.68 per diluted share, for the first quarter of 2025, compared to $23.3 million, or $1.23 per diluted share, for the same quarter in 2024. The number of revenue-generating professionals (1) , excluding Managed Services professionals, increased 3.1% to 4,726 as of March 31, 2025 from 4,584 as of March 31, 2024. The utilization rate (5) of the company's Consulting capability increased to 74.1% during the first quarter of 2025, compared to 70.2% during the same period last year. The utilization rate (5) for the company's Digital capability increased to 78.2% during the first quarter of 2025, compared to 74.3% during the same period last year. The number of Managed Services professionals increased 37.7% to 1,679 as of March 31, 2025 from 1,219 as of March 31, 2024. OPERATING INDUSTRIES The company's first quarter 2025 revenues before reimbursable expenses by operating segment as a percentage of total company revenues before reimbursable expenses are as follows: Healthcare (50%); Education (31%); and Commercial (19%). Financial results by operating industry are included in the attached schedules and in Huron's forthcoming Quarterly Report on Form 10-Q filing for the quarter ended March 31, 2025. OUTLOOK FOR 2025 Based on currently available information, the company is reaffirming guidance for full year 2025 revenues before reimbursable expenses in a range of $1.58 billion to $1.66 billion. The company also anticipates adjusted EBITDA as a percentage of revenues before reimbursable expenses (6) in a range of 14.0% to 14.5%, and adjusted diluted earnings per share (6) guidance in a range of $6.80 to $7.60. FIRST QUARTER 2025 WEBCAST The company will host a webcast to discuss its financial results today, April 29, 2025, at 5:00 p.m. Eastern Time, 4:00 p.m. Central Time. The conference call is being webcast by Notified and can be accessed from Huron's website at http://ir.huronconsultinggroup.com . A replay will be available approximately two hours after the conclusion of the webcast and for 90 days thereafter. USE OF NON-GAAP FINANCIAL MEASURES (6) In evaluating the company's financial performance and outlook, management uses EBITDA, adjusted EBITDA, adjusted EBITDA as a percentage of revenues before reimbursable expenses, adjusted net income, and adjusted diluted earnings per share, which are non-GAAP measures. Management uses these non-GAAP financial measures to gain an understanding of the company's comparative operating performance (when comparing such results with previous periods or forecasts). These non-GAAP financial measures are used by management in their financial and operating decision making because management believes they reflect the company's ongoing business in a manner that allows for meaningful period-to-period comparisons. Management also uses these non-GAAP financial measures when publicly providing their business outlook, for internal management purposes, and as a basis for evaluating potential acquisitions and dispositions. Management believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating Huron's current operating performance and future prospects in the same manner as management does, if they so choose, and in comparing in a consistent manner Huron's current financial results with Huron's past financial results. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States. Management has provided its outlook regarding adjusted EBITDA as a percentage of revenues before reimbursable expenses and adjusted diluted earnings per share, both of which are non-GAAP financial measures and exclude certain charges. Management has not reconciled these non-GAAP financial measures to the corresponding GAAP financial measures because guidance for the various reconciling items is not provided. Management is unable to provide guidance for these reconciling items because they cannot determine their probable significance, as certain items are outside of the company's control and cannot be reasonably predicted since these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measures are not available without unreasonable effort. ABOUT HURON Huron is a global professional services firm that partners with clients to put possible into practice by creating sound strategies, optimizing operations, accelerating digital transformation, and empowering businesses to own their future. By embracing diverse perspectives, encouraging new ideas and challenging the status quo, we create sustainable results for the organizations we serve. Learn more at www.huronconsultinggroup.com . Statements in this press release that are not historical in nature, including those concerning the company's current expectations about its future results, are "forward-looking" statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as "may," "should," "expects," "provides," "anticipates," "assumes," "can," "will," "meets," "could," "likely," "intends," "might,"