FTI Consulting : 1Q26 Earnings Conference Call Presentation

Published: 2026-04-30 07:49:24 ET FCN

Published on 04/30/2026 at 07:49 am EDT

First Quarter 2026 Earnings Conference Call

April 30, 2026

All numbers in $000s, except for per share

Consolidated Results

data and percen

Q1 2026

tages

Q4 2025

% Variance

Q1 2025

% Variance

Percentage Change in Revenues Excluding the Estimated Impact of Foreign Currency Translation for Q1 2026 vs. Q1 2025

Revenues

$ 983,345

$ 990,746

-0.7%

$ 898,282

9.5%

6.8%

Net income

$ 57,631

$ 54,531

5.7 %

$ 61,824

-6.8 %

Earnings per Diluted Share

$ 1.90

$ 1.78

6.7 %

$ 1.74

9.2 %

Adjusted Earnings per Diluted Share (1)

$ 1.90

$ 1.78

6.7 %

$ 2.29

-17.0%

Adjusted EBITDA (1)

$ 96,818

$ 106,238

-8.9 %

$ 115,164

-15.9%

Adjusted EBITDA Margin (1)

9.8%

10.7%

12.8%

(1) See "Financial Tables" and "End Notes: FTI Consulting Non-GAAP Financial Measures" for the reconciliations and definitions of Adjusted Earnings per Diluted Share and Adjusted EBITDA, which are non-

GAAP financial measures, to the most directly comparable GAAP financial measures, and for the definition of Adjusted EBITDA Margin, which is a non-GAAP financial measure. 3

All numbers in $000s, except for per share data and percentages

Percentage Change in Revenues

Excluding the Estimated Impact of

Foreign Currency Translation for

Segment Results

Q1 2026

Q4 2025

% Variance

Q1 2025

% Variance

Q1 2026 vs. Q1 2025

Corporate Finance

Revenues

409,502

423,189

-3.2 % $

343,645

19.2 %

16.7%

Segment Operating Income

85,230

76,730

11.1 % $

40,950

108.1 %

Adjusted Segment EBITDA (1)

88,650

80,112

10.7 % $

55,947

58.5 %

Adjusted Segment EBITDA Margin (1)

21.6%

18.9%

16.3%

Forensic and Litigation Consulting

Revenues

192,878

192,879

0.0 % $

190,602

1.2 %

-0.9%

Segment Operating Income

23,085

21,586

6.9 % $

30,106

-23.3 %

Adjusted Segment EBITDA (1)

25,264

23,818

6.1 % $

37,523

-32.7 %

Adjusted Segment EBITDA Margin (1)

13.1%

12.3%

19.7%

Economic Consulting

Revenues

175,648

176,225

-0.3 % $

179,861

-2.3 %

-5.7%

Segment Operating Income (Loss)

(7,331)

(279)

-2,527.6 % $

12,089

-160.6 %

Adjusted Segment EBITDA (1)

(5,882)

1,027

-672.7 % $

14,431

-140.8 %

Adjusted Segment EBITDA Margin (1)

(3.3%)

0.6%

8.0%

Technology

Revenues

102,323

99,047

3.3 % $

97,156

5.3 %

2.8%

Segment Operating Income

7,703

10,669

-27.8 % $

6,594

16.8 %

Adjusted Segment EBITDA (1)

11,833

14,798

-20.0 % $

11,592

2.1 %

Adjusted Segment EBITDA Margin (1)

11.6%

14.9%

11.9%

Strategic Communications

Revenues

102,994

99,406

3.6 % $

87,018

18.4 %

14.5%

Segment Operating Income

20,838

17,963

16.0 % $

8,725

138.8 %

Adjusted Segment EBITDA (1)

21,890

19,039

15.0 % $

12,903

69.7 %

Adjusted Segment EBITDA Margin (1)

21.3%

19.2%

14.8%

(1) See "Financial Tables" and "End Notes: FTI Consulting Non-GAAP Financial Measures" for the reconciliations and definitions of Adjusted Segment EBITDA, which is a non-GAAP financial measure, to the

most directly comparable GAAP financial measure, and for the definition of Adjusted EBITDA Margin, which is a non-GAAP financial measure. 4

Cash Position and Capital Allocation Snapshot

All numbers in $000s, except for DSO

As of March 31, 2026

As of December 31, 2025

As of March 31, 2025

Cash and cash equivalents

$ 198,276

$ 265,091

$ 151,121

Accounts receivable, net

$ 1,148,084

$ 1,037,678

$ 1,096,020

Days Sales Outstanding ("DSO") (1)

100

Net cash provided by (used in) operating activities

$ (310,023) $ 359,756 $ (465,210)

Purchases of property and equipment

$ (10,618) $ (8,389) $ (17,803)

Purchase and retirement of common stock

$ (126,827) $ (87,792) $ (182,641)

Total Debt (2)

$ 755,000 $ 365,000 $ 160,000

Free Cash Flow (3)

$ (320,641) $ 351,367 $ (483,013)

(1) DSO is a performance measure used to assess how quickly revenues are collected by the Company. We calculate DSO at the end of each reporting period by dividing net accounts receivable reduced by billings in excess of services provided, by revenues for the quarter, adjusted for changes in foreign exchange rates. We multiply the result by the number of days in the quarter.

(2) On March 17, 2026, we entered into an incremental amendment to our Second Amended and Restated Credit Agreement which provides for a term loan in the aggregate amount of $300.0 million (the "Incremental Term Loan"). Total debt excludes the impact of unamortized deferred issuance costs related to the Incremental Term Loan.

(3) See "Financial Tables" and "End Notes: FTI Consulting Non-GAAP Financial Measures" for the reconciliation and definition of Free Cash Flow, which is a non-GAAP financial measure, to the most directly comparable GAAP financial measure.

Financial Tables

Reconciliations of Net Income to Adjusted Net Income and Earnings per Diluted Share to Adjusted Earnings per Diluted Share

All numbers in $000s, except for per share data

Three Months Ended March 31, 2026

Three Months Ended December 31, 2025

Three Months Ended March 31, 2025

Net income

$ 57,631

$ 54,531

$ 61,824

Special charges

25,295

Tax impact of special charges

(5,799)

Adjusted Net Income (1)

$ 57,631

$ 54,531

$ 81,320

Earnings per Diluted Share

$ 1.90

$ 1.78

$ 1.74

Special charges

0.71

Tax impact of special charges

(0.16)

Adjusted Earnings per Diluted Share (1)

$ 1.90

$ 1.78

$ 2.29

Weighted average number of common shares outstanding - diluted

30,329

30,675

35,500

Reconciliations of Net Income and Operating Income (Loss) to

Adjusted Segment EBITDA and Adjusted EBITDA

All numbers in $000s

Three Months Ended March 31, 2026

Corporate Finance

Forensic and Litigation Consulting

Economic Consulting

Technology

Strategic Communications

Unallocated Corporate

Total

Net income

$ 57,631

Interest income and other

(1,074)

Interest expense

6,445

Income tax provision

20,915

Operating income (loss)

$ 85,230

$ 23,085

$ (7,331)

$ 7,703

$ 20,838

$ (45,608)

$ 83,917

Depreciation of property and equipment

3,105

1,950

1,449

4,130

984

671

12,289

Amortization of intangible assets

315

229

612

Adjusted EBITDA (1) $ 88,650 $ 25,264 $ (5,882) $ 11,833 $ 21,890 $ (44,937) $ 96,818

Three Months Ended December 31, 2025

Corporate Finance

Forensic and Litigation Consulting

Economic Consulting

Technology

Strategic Communications

Unallocated Corporate

Total

Net income

$ 54,531

Interest income and other

(864)

Interest expense

7,537

Income tax provision

32,232

Operating income (loss)

$ 76,730

$ 21,586

$ (279)

$ 10,669

$ 17,963

$ (33,233)

$ 93,436

Depreciation of property and equipment

3,052

2,003

1,306

4,129

1,006

677

12,173

Amortization of intangible assets

330

229

629

Adjusted EBITDA (1) $ 80,112 $ 23,818 $ 1,027 $ 14,798 $ 19,039 $ (32,556) $ 106,238

Reconciliations of Net Income and Operating Income to

Adjusted Segment EBITDA and Adjusted EBITDA

Three Months Ended March 31, 2025

All numbers in $000s

Corporate Finance

Forensic and Litigation Consulting

Economic Consulting

Technology

Strategic Communications

Unallocated Corporate

Total

Net income

$ 61,824

Interest income and other

(2,842)

Interest expense

968

Income tax provision

18,757

Operating income

$ 40,950

$ 30,106

$ 12,089

$ 6,594

$ 8,725

$ (19,757)

$ 78,707

Depreciation of property and equipment

2,582

1,713

1,359

3,070

841

580

10,145

Amortization of intangible assets

719

229

1,017

Special charges

11,696

5,475

983

1,928

3,268

1,945

25,295

Adjusted EBITDA (1)

$ 55,947

$ 37,523

$ 14,431

$ 11,592

$ 12,903

$ (17,232) $

115,164

Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow

All numbers in $000s

Three Months Ended March 31, 2026

Three Months Ended December 31, 2025

Three Months Ended March 31, 2025

Net cash provided by (used in) operating activities

$ (310,023) $

359,756 $

(465,210)

Purchases of property and equipment

(10,618)

(8,389)

(17,803)

Free Cash Flow (1)

$ (320,641) $

351,367 $

(483,013)

End Notes: FTI Consulting Non-GAAP Financial Measures

In this presentation, 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 measures are considered "non-GAAP financial measures" under the Securities and Exchange Commission ("SEC") rules. Specifically, we have referred to the following non-GAAP financial measures in this presentation:

Adjusted Segment EBITDA Adjusted EBITDA Adjusted EBITDA Margin Adjusted Net Income

Adjusted Earnings per Diluted Share Free Cash Flow

We have included the definition of Segment Operating Income (Loss), which is a GAAP financial measure, below in order to more fully define the components of certain non-GAAP financial measures in this presentation. We define Segment Operating Income (Loss) as a segment's share of consolidated operating income. We use Segment Operating Income (Loss) for the purpose of calculating Adjusted Segment EBITDA, which is a non-GAAP financial measure. We define Adjusted Segment EBITDA as Segment Operating Income (Loss) 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 and losses on early extinguishment of debt. 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 earnings per diluted share ("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 and losses on early extinguishment of debt. 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.

We define Free Cash Flow, which is a non-GAAP financial measure, as net cash provided by (used in) operating activities less cash payments for purchases of property and equipment. We believe this non-GAAP financial measure, when considered together with our GAAP financial results, provides management and investors with useful supplemental information on the Company's ability to generate cash for ongoing business operations and capital deployment.

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 and Consolidated Statements of Cash Flows.

First Quarter 2026: Select Geographic Review

All numbers in $000s, except for percentages

Consolidated Revenues by Region

Region

Q1 2026

Q4 2025

% Variance

Q1 2025

% Variance

Percentage Change in Revenues Excluding the Estimated Impact of Foreign Currency Translation for Q1 2026 vs. Q1 2025

North America

$ 635,644 $

626,395

1.5% $

597,857

6.3%

5.9%

EMEA

$ 286,023

$ 298,004

-4.0% $

245,482

16.5%

8.5%

Asia Pacific

$ 50,174

$ 54,734

-8.3% $

45,516

10.2%

7.3%

Latin America

$ 11,504

$ 11,613

-0.9% $

9,427

22.0%

13.0%

Region

Q1 2026

Q4 2025

Q1 2025

North America

64.6%

63.2%

66.6%

EMEA

29.1%

30.1%

27.3%

Asia Pacific

5.1%

5.5%

5.1%

Latin America

1.2%

1.0%

First Quarter 2026

Disclaimer

FTI Consulting Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 11:48 UTC.