Huron Consulting Group Inc. (HURN) reported fourth‑quarter 2025 results that showed revenue before reimbursable expenses of $432.3 million, a 11.3% increase from $388.4 million a year earlier, and net income of $30.7 million. Diluted earnings per share were $1.72, while adjusted diluted EPS rose to $2.17, exceeding consensus estimates of $1.99–$1.95 by $0.23. Adjusted EBITDA reached $68 million, or 15.7% of revenue, up 19.7% from $56.8 million a year earlier.
The revenue miss—$432.3 million versus analyst expectations of $442.3 million—was largely driven by a decline in digital‑capability revenue within the healthcare segment, offset by strong demand in the healthcare and commercial segments. The commercial segment, in particular, delivered record revenue, while the education segment remained flat year‑over‑year, contributing to the overall shortfall relative to forecasts.
The adjusted EPS beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin consulting and managed‑services work. Adjusted EBITDA margin expanded to 15.7% from 14.6% a year earlier, reflecting improved pricing power and operational leverage. CEO Mark Hussey noted, "We finished 2025 with strong fourth‑quarter results. Revenues before reimbursable expenses, or RBR, grew 11% in the fourth quarter of 2025, driven by record RBR in the Healthcare and Commercial segments. We also continued our trajectory of margin expansion, and achieved adjusted diluted earnings per share growth of 21% over 2024."
Management reiterated confidence in the 2026 outlook, guiding full‑year revenue to $1.78 billion–$1.86 billion, adjusted EBITDA margin to 14.5%–15.0%, and diluted EPS to $8.35–$9.15. CFO John Kelly added, "Fourth quarter of 2025 produced RBR of $432.3 million, up 11.3% from $388.4 million in the same quarter of 2024, and adjusted EBITDA was $68 million, or 15.7% of RBR compared to $56.8 million in Q4 2024." The guidance sits slightly below the consensus revenue estimate of $1.82 billion, reflecting a cautious view of near‑term demand.
Investor reaction was muted, with analysts noting the revenue miss and guidance below consensus tempered enthusiasm for the earnings beat. The market’s focus on the revenue shortfall and the modest upside in guidance highlights the importance of meeting revenue expectations in the consulting sector.
Strategically, Huron continues to invest in AI and automation, having deployed over 100 solutions in health systems, and has broadened its digital capabilities through acquisitions such as AXIOM Systems’ consulting services division. The company’s focus on high‑margin consulting and managed‑services work, coupled with a strong backlog, positions it to sustain growth in 2026 despite the flat performance in the education segment.
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