Huron Consulting Group Inc.
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
HURN$166.82-5.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0001289848-25-000132
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001289848-25-000191
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 173 previous paragraphs and 215 current paragraphs.
100 unchanged; 55 reworded; 49 added; 18 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 9 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (49)
Current report
2024 litigation settlement gain: In the second quarter of 2024, we settled a litigation matter in which Huron was the plaintiff for $15.0 million, on a pre-tax basis. This $15.0 million settlement gain was recorded as a component of other gains, net on our consolidated statement of operations. We have excluded from our non-GAAP measures $11.7 million, which is the value of the settlement gain that exceeds the third-party legal costs incurred during 2024 specific to this litigation matter, as this net gain is not indicative of the ongoing performance of our business. Of the $3.3 million third-party legal costs incurred for this matter in the first half of 2024, $2.7 million was incurred in the first quarter and $0.6 million was incurred in the second quarter. Our third-party legal expenses are recorded as a component of selling, general and administrative expenses on our statement of operations.
Current report
•Revenues before reimbursable expenses increased 8.3% to $402.5 million for the second quarter of 2025 from $371.7 million for the second quarter of 2024.
Current report
•Diluted EPS was $1.09 for the second quarter of 2025, compared to $2.03 for the second quarter of 2024. Diluted EPS for the second quarter of 2025 includes a non-cash credit-related impairment charge on our convertible debt investment in a third-party, which had an unfavorable $0.46 impact on diluted EPS. Diluted EPS for the second quarter of 2024 includes a litigation settlement gain related to a completed legal matter in which Huron was the plaintiff, which had a favorable $0.60 impact on diluted EPS.
Current report
Revenues before reimbursable expenses increased $30.9 million, or 8.3%, to $402.5 million for the second quarter of 2025 from $371.7 million for the second quarter of 2024. The increase in revenues before reimbursable expenses reflects continued strength in demand for our Digital capabilities within our Commercial and Education segments and our Consulting and Managed Services capabilities within our Healthcare and Education segments. The increase includes $13.1 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting in December 2024. These increases were partially offset by a decrease in demand for our Consulting and Managed Services capability within our Commercial segment and our Digital capability within our Healthcare segment.
Current report
Net income was $19.4 million, or 4.7% of total revenues, for the second quarter of 2025 compared to $37.5 million, or 9.8% of total revenues, for the same period last year. Net income for the second quarter of 2025 includes an $8.2 million non-cash credit-related impairment charge, net of tax, related to our convertible debt investment in a third-party. Net income for the second quarter of 2024 includes an $11.1 million litigation settlement gain, net of tax, related to a completed legal matter in which Huron was the plaintiff. Diluted earnings per share for the second quarter of 2025 was $1.09, compared to $2.03 for the second quarter of 2024. The non-cash credit-related impairment charge recognized in the second quarter of 2025 had an unfavorable $0.46 impact on diluted earnings per share for the period. The litigation settlement gain recognized in the second quarter of 2024 had a favorable $0.60 impact on diluted earnings per share in the prior year period. Adjusted diluted earnings per share increased 12.5% to $1.89 for the second quarter of 2025, compared to $1.68 for the second quarter of 2024.
Current report
Adjusted EBITDA increased $4.9 million, or 8.8%, to $60.6 million, or 15.1% of revenues before reimbursable expenses, for the second quarter of 2025, compared to $55.7 million, or 15.0% of revenues before reimbursable expenses, for the same period last year.
Current report
Operating expenses for the second quarter of 2025 increased $44.5 million, or 13.8%, over the second quarter of 2024.
Current report
Other Gains, Net
Current report
Other gains, net totaled $0.1 million in the second quarter of 2025 compared to $15.9 million in the second quarter of 2024. The $0.1 million of other gains, net in the second quarter of 2025 consisted of a remeasurement gain to decrease the fair value of a contingent consideration liability related to business combinations. The $15.9 million of other gains, net in the second quarter of 2024 consisted of a pre-tax $15.0 million litigation settlement gain for a completed legal matter in which Huron was the plaintiff, as well as $0.9 million of remeasurement gains to decrease the fair value of our contingent consideration liabilities related to business combinations.
Current report
Restructuring charges for the second quarter of 2025 were $0.6 million, compared to $2.1 million for the second quarter of 2024. The $0.6 million of restructuring charges recognized in the second quarter of 2025 primarily consisted of rent and related expenses, net of sublease income, for our previously vacated office spaces.
Current report
The $2.1 million of restructuring charges recognized in the second quarter of 2024 included a $1.4 million non-cash impairment charge on the right-of-use operating lease asset and fixed assets for the office space previously occupied by GG+A, which we exited in the second quarter of 2024. Additionally, in the second quarter of 2024, we recognized $0.6 million of restructuring expense for rent and related expenses, net of sublease income, for our previously vacated office spaces.
Current report
•Healthcare operating income increased $4.4 million, or 8.0%, primarily due to the increase in revenues before reimbursable expenses, as well as decreases in bad debt expense and salaries and related expenses for our support personnel; partially offset by increases in compensation costs for our revenue-generating professionals and contractor expenses. The increase in compensation costs for our revenue-generating professionals was primarily driven by an increase in headcount and annual salary increases that went into effect in the first quarter of 2025. Healthcare operating margin increased to 30.2% from 29.1% primarily due to the decreases in bad debt expense and salaries and related expenses for our support personnel; partially off by an increase in contractor expenses, as a percentage of revenues before reimbursable expenses.
Current report
•Education operating income increased $1.5 million, or 5.0%, primarily due to the increase in revenues before reimbursable expenses and a decrease in performance bonus expense for our revenue-generating professionals; partially offset by increases in salaries and related expenses for our revenue-generating professionals and support personnel, project costs, contractor expenses, and amortization of internally developed software. The increases in salaries and related expenses for our revenue-generating professionals and support personnel were primarily driven by an increase in headcount and annual salary increases that went into effect in the first quarter of 2025. Education operating margin decreased to 25.0% from 25.1% primarily driven by the increases in project costs, salaries and related expenses for our support personnel, amortization of internally developed software, and contractor expenses, as percentages of revenues before reimbursable expenses; largely offset by revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals and the decrease in performance bonus expenses for our revenue-generating professionals.
Current report
•Commercial operating income increased $3.5 million, or 38.7%, primarily due to the increase in revenues before reimbursable expense; partially offset by increases in compensation costs for our revenue-generating professionals and contractor expenses. The increase in compensation costs was primarily due to the increased headcount, driven by our acquisition of AXIA Consulting, and annual salary increases that went into effect in the first quarter of 2025; partially offset by a decrease in performance bonus expense. Commercial operating margin increased to 16.6% from 15.3% primarily due revenue growth that outpaced the increases in compensation costs for our revenue-generating professionals; partially offset by an increase in contractor expenses, as a percentage of revenues before reimbursable expenses.
Current report
•Unallocated corporate expenses increased $8.7 million, or 19.0%, primarily due to increases in compensation costs for our support personnel, legal expenses, and third-party professional fees. The increase in compensation costs for our support personnel was primarily driven by an increase in deferred compensation expense attributable to the change in market value of our deferred compensation liability and an increase in headcount and annual salary increases that went into effect in the first quarter of 2025. The increases in legal expenses and third-party professional fees was primarily driven by professional fees for our programmatic acquisition activity.
Current report
For the three months ended June 30, 2025, our effective tax rate was 29.9% as we recognized income tax expense of $8.3 million on income of $27.7 million. The effective tax rate of 29.9% was less favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to the establishment of a valuation allowance for a deferred tax asset recorded as the result of the capital loss on our investment in a hospital-at-home company as well as certain nondeductible expense items, partially offset by a tax benefit related to non-taxable gains on our investments used to fund our deferred compensation liability.
Current report
Net income decreased $18.1 million, or 48.2%, to $19.4 million for the three months ended June 30, 2025 from $37.5 million for the same period last year driven by the $11.1 million litigation settlement gain, net of tax, recognized in the second quarter 2024 related to a completed legal matter in which Huron was the plaintiff and the $8.2 million non-cash credit-related impairment charge, net of tax, recognized in the second quarter of 2025 related to our convertible debt investment in a third-party. Diluted earnings per share for the second quarter of 2025 decreased to $1.09 from $2.03 for the second quarter of 2024; driven by the decrease in net income, partially offset by a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan. The non-cash credit-related impairment charge on our convertible debt investment had an unfavorable $0.46 impact on diluted EPS during the second quarter of 2025, while the litigation settlement gain related to a completed legal matter in which Huron was the plaintiff had a favorable $0.60 impact on diluted EPS for the prior year period.
Current report
EBITDA decreased $22.0 million, or 33.2%, to $44.3 million for the second quarter of 2025 from $66.3 million for the second quarter of 2024. The decrease in EBITDA was primarily attributable to the pre-tax $15.0 million litigation settlement gain recognized in the second quarter of 2024 for a completed legal matter in which Huron was the plaintiff, the pre-tax $11.1 million non-cash credit-related impairment charge related to our convertible debt investment in a third-party, and the increase in unallocated corporate expenses, excluding the impact of the change in the market value of our deferred compensation liability; partially offset by the increases in segment operating income for all three operating segments, excluding segment depreciation and amortization.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Revenues before reimbursable expenses increased $70.6 million, or 9.7%, to $798.2 million for the first six months of 2025 from $727.6 million for the first six months of 2024. The overall increase in revenues before reimbursable expenses reflects continued strength in demand for our Digital capabilities within our Commercial and Education segments and our Consulting and Managed Services capabilities within our Healthcare and Education segments. The increase includes $24.9 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting in December 2024. These increases were partially offset by decreases in demand for our Consulting and Managed Services capability within our Commercial segment and our Digital capability within our Healthcare segment. Additional information on our revenues before reimbursable expenses by segment follows.
Current report
The number of revenue-generating professionals, excluding Managed Services professionals, within our Healthcare segment grew 8.7% to 1,329 as of June 30, 2025, compared to 1,223 as of June 30, 2024. Our acquisition of Eclipse Insights in June 2025 added approximately 40 revenue-generating professionals.
Current report
•Education revenues before reimbursable expenses increased $17.7 million, or 7.6%, driven by continued strength in demand for our strategy and operations solution within our Consulting and Managed Services capability and our software products within our Digital capability, as well as $6.1 million of incremental revenues before reimbursable expenses from our acquisitions of GG+A, Advancement Resources, AXIA Consulting, and Halpin.
Current report
•Commercial revenues before reimbursable expenses increased $27.4 million, or 22.4%, which included $23.5 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting completed in December 2024 and strengthened demand for our technology and analytics services within our Digital capability. These increases were partially offset by decreases in demand for our financial advisory and strategy and innovation solutions within our Consulting and Managed Services capability.
Current report
Direct Costs
Current report
Direct costs increased $45.2 million, or 9.0%, to $547.1 million for the first six months of 2025 from $501.9 million for the first six months of 2024. The $45.2 million increase primarily related to a $38.1 million increase in compensation costs for our revenue-generating professionals, a $5.3 million increase in contractor expenses, and a $1.4 million increase in technology costs. The increase in compensation costs reflects our investment to grow our talented team to meet increased market demand and is primarily attributable to a $31.9 million increase in salaries and related expenses driven by increased headcount and annual salary increases that went into effect in the first quarter of 2025, a $4.7 million increase in performance bonus expense and a $1.4 million increase in signing, retention and other bonus expense. As a percentage of revenues before reimbursable expenses, direct costs decreased to 68.5% during the first six months of 2025, compared to 69.0% during the first six months of 2024. This decrease was primarily due to revenue growth that outpaced the increase in compensation costs for our revenue-generating professionals; partially offset by an increase in contractor expenses, as a percentage of revenues before reimbursable expenses.
Current report
Selling, General and Administrative Expenses
Current report
Selling, general and administrative expenses increased by $12.7 million, or 8.8%, to $156.9 million in the first six months of 2025 from $144.1 million in the first six months of 2024. The $12.7 million increase includes a $7.4 million increase in compensation costs for our support personnel, a $3.5 million increase in software and data hosting expenses, a $1.4 million increase in promotion and marketing expenses, a $1.1 million increase in severance expenses, and a $1.0 million increase in third-party professional fees; partially offset by a $2.3 million decrease in legal expenses and a $2.0 million decrease in bad debt expense. The $7.4 million increase in compensation costs for our support personnel was driven by a $6.4 million increase in salaries and related expenses and a $1.9 million increase in performance bonus expense. As a percentage of revenues before reimbursable expenses, selling, general and administrative expenses decreased to 19.7% during the first six months of 2025, compared to 19.8% during the first six months of 2024, which was primarily driven by the decreases in legal expenses and bad debt expense; largely offset by the increase in software and data hosting expenses, as a percentage of revenues before reimbursable expenses.
Current report
Other Gains, Net
Current report
Other gains, net totaled $0.1 million in the first six months of 2025 and $14.3 million in the first six months of 2024. The $0.1 million of other gains, net in the first six months of 2025 consisted of a remeasurement gain to decrease the fair value of a contingent consideration liability related to business combinations. The $14.3 million of other gains, net in the first six months of 2024 primarily consisted of a pre-tax $15.0 million litigation settlement gain for a completed legal matter in which Huron was the plaintiff.
Current report
Restructuring Charges
Current report
Depreciation and Amortization
Current report
Depreciation and amortization expense increased $2.1 million, or 17.2%, to $14.1 million for the first six months of 2025, compared to $12.0 million for the first six months of 2024. The $2.1 million increase in depreciation and amortization expense was primarily attributable to increases in amortization of internally developed software and intangible assets acquired in business acquisitions.
Current report
Operating Income
Current report
Operating income decreased $0.9 million, or 1.2%, to $78.4 million in the first six months of 2025 from $79.3 million in the first six months of 2024. Operating margin, which is defined as operating income expressed as a percentage of revenues before reimbursable expenses, decreased to 9.8% for the first six months of 2025, compared to 10.9% for the first six months of 2024.
Current report
Other Income (Expense), Net
Current report
Other income (expense), net totaled expense of $14.3 million in the first six months of 2025, compared to income of $3.4 million in the first six months of 2024. In the first six months of 2025, we recognized a pre-tax $11.1 million non-cash credit-related impairment charge related to our convertible debt investment in a third-party, non-cash impairment charges of $5.0 million on our equity investment in a hospital-at-home company and $0.6 million of foreign currency transaction losses; partially offset by a $2.5 million gain recognized for the market value of our investments that are used to fund our deferred compensation liability. In the first six months of 2024, we recognized a $2.8 million gain for the market value of our deferred compensation investments and $0.6 million of foreign currency transaction gains. The change in the market value of our investments that are used to fund our deferred compensation liability are offset with deferred compensation expense which is recognized as a component of selling, general and administrative expenses on our consolidated statements of operations. See Note 10 “Fair Value of Financial Instruments” within the notes to our consolidated financial statements for additional information on our convertible debt and equity investments. See Note 9 “Derivative Instruments and Hedging Activity” within the notes to our consolidated financial statements for additional information on our foreign exchange forward contracts.
Current report
Income Tax Expense
Current report
For the six months ended June 30, 2025, our effective tax rate was 10.6% as we recognized income tax expense of $5.2 million on income of $49.2 million. The effective tax rate of 10.6% was more favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to a discrete tax benefit for share-based compensation awards that vested during the first quarter of 2025. This favorable item was partially offset by the establishment of a valuation allowance for a deferred tax asset recorded as the result of the capital loss on our investment in a hospital-at-home company and certain nondeductible expenses.
Current report
Net income decreased $11.5 million, or 20.8%, to $44.0 million for the six months ended June 30, 2025 from $55.5 million for the same period last year, driven by the $11.1 million litigation settlement gain, net of tax, recognized in the second quarter 2024 related to a completed legal matter in which Huron was the plaintiff and the $8.2 million non-cash credit-related impairment charge, net of tax, recognized in the second quarter of 2025 related to our convertible debt investment in a third-party. Diluted earnings per share for the six months ended June 30, 2025 decreased to $2.42 compared to $2.96 for the six months ended June 30, 2024; driven by the decrease in net income, partially offset by a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan. The non-cash credit-related impairment charge on our convertible debt investment had an unfavorable $0.45 impact on diluted EPS during the first six months of 2025, while the litigation settlement gain related to a completed legal matter in which Huron was the plaintiff had a favorable $0.59 impact on diluted EPS for the prior year period.
Current report
EBITDA and Adjusted EBITDA
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Removed paragraphs (18)
Previous report
Revenues before Reimbursable Expenses
Previous report
Reimbursable Expenses
Previous report
Operating Expenses
Previous report
•Revenues before reimbursable expenses increased 11.2% to $395.7 million for the first quarter of 2025 from $356.0 million for the first quarter of 2024.
Previous report
•Diluted EPS increased 40.0% to $1.33 for the first quarter of 2025, compared to $0.95 for the first quarter of 2024.
Previous report
Revenues before reimbursable expenses increased $39.7 million, or 11.2%, to $395.7 million for the first quarter of 2025 from $356.0 million for the first quarter of 2024. The increase in revenues before reimbursable expenses reflects strength in demand for our Consulting and Managed Services capabilities within our Healthcare and Education segments; and an increase in demand for our Digital capabilities within our Commercial and Education segments, including $11.9 million of incremental revenues before reimbursable expenses from the company's acquisition of AXIA Consulting in December 2024. These increases were partially offset by a decrease in demand for our Consulting and Managed Services capability within our Commercial segment.
Previous report
Net income increased $6.5 million, or 36.3%, to $24.5 million, or 6.1% of total revenues, for the three months ended March 31, 2025 from $18.0 million, or 5.0% of total revenues, for the same period last year. As a result of the increase in net income and a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan, diluted earnings per share for the first quarter of 2025 increased 40.0% to $1.33, compared to $0.95 for the first quarter of 2024. Adjusted diluted earnings per share increased 36.6% to $1.68 for the first quarter of 2025, compared to $1.23 for the first quarter of 2024.
Previous report
Adjusted EBITDA increased $7.7 million, or 22.7%, to $41.5 million, or 10.5% of revenues before reimbursable expenses, for the three months ended March 31, 2025, compared to $33.8 million, or 9.5% of revenues before reimbursable expenses, for the same period last year.
Previous report
Revenues before Reimbursable Expenses
Previous report
Operating Expenses
Previous report
Reimbursable Expenses
Previous report
Other Losses
Previous report
Other losses totaled $1.6 million in the first quarter of 2024 and consisted of a $1.0 million litigation settlement loss for a completed legal matter and $0.5 million of net remeasurement losses to increase the fair value of our contingent consideration liabilities related to business combinations. There were no other losses or gains recognized in the first quarter of 2025.
Previous report
Net income increased $6.5 million, or 36.3%, to $24.5 million for the three months ended March 31, 2025 from $18.0 million for the same period last year. As a results of the increase in net income and a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan, diluted earnings per share for the first quarter of 2025 increased to $1.33 from $0.95 for the first quarter of 2024.
Previous report
EBITDA increased $5.4 million, or 18.6%, to $34.2 million for the first quarter of 2025 from $28.9 million for the first quarter of 2024. The increase in EBITDA was primarily attributable to the increases in Healthcare and Education segment operating income, excluding segment depreciation and amortization; partially offset by the $4.2 million non-cash impairment loss related to our preferred stock investment in a hospital-at-home company recognized in the first quarter of 2025, the decrease in Commercial segment operating income, excluding segment depreciation and amortization, and the increase in unallocated corporate expenses, excluding the impact of the change in the market value of our deferred compensation liability.
Previous report
At March 31, 2025, we had $576.3 million outstanding under our Amended Credit Agreement, as discussed below.
Previous report
The borrowing capacity under the Revolver is reduced by any outstanding borrowings under the Revolver and outstanding letters of credit. At March 31, 2025, we had outstanding letters of credit totaling $0.4 million, which are used as security deposits for our office facilities. As of March 31, 2025, the unused borrowing capacity under the Revolver was $284.6 million.
Previous report
Refer to Note 7 “Financing Arrangements” for additional information on our senior secured credit facility within the notes to the consolidated financial statements.
Reworded paragraphs (55)
Previous wording
Our Healthcare segment serves acute care providers, including national and regional health systems; academic health systems; community health systems; the federal health system; and public, children’s and critical access hospitals, and non-acute care providers, including physician practices and medical groups; payors; and long-term care or post-acute providers. Our healthcare-focused services and products include financial and operational performance improvement consulting, which spans revenue cycle, business operations and care delivery transformation; digital offerings, spanning technology and analytic-related services, including enterprise health record (“EHR”), enterprise resource planning (“ERP”) and enterprise performance management (“EPM”), customer relationship management (“CRM”), data management, artificial intelligence (“AI”) and automation, and technology managed services, and a portfolio of software products; human capital management; revenue cycle managed services and outsourcing; financial advisory consulting; and strategy and innovation consulting.
Current wording
Our Healthcare segment serves acute care providers, including national and regional health systems; academic health systems; community health systems; the federal health system; and public, children’s and critical access hospitals, and non-acute care providers, including physician practices and medical groups; payors; and long-term care or post-acute providers. Our healthcare-focused services and products include financial and operational performance improvement consulting, which spans revenue cycle, business operations and care delivery transformation; digital offerings, spanning technology and analytic-related services, including enterprise health record (“EHR”), enterprise resource planning (“ERP”) and enterprise performance management (“EPM”), customer relationship management (“CRM”), data management, artificial intelligence (“AI”) and automation, and technology managed services, and a portfolio of software products; human capital management; revenue cycle managed services and outsourcing; financial advisory consulting; and strategy and innovation consulting. In June 2025, we enhanced our consulting offerings through the acquisition of Eclipse Insights, a leading provider of revenue cycle solutions.
Previous wording
Our Commercial segment is focused on serving industries and organizations facing significant disruption and regulatory change by helping them adapt to rapidly changing environments and accelerate business transformation. Our Commercial professionals work primarily with six primary buyers: the chief executive officer, the chief financial officer, the chief strategy officer, the chief human resources officer, the chief operating officer, and organizational advisors, including lenders and law firms. We have a deep focus on serving organizations in the financial services, energy and utilities, industrials and manufacturing industries and the public sector while opportunistically serving commercial industries more broadly, including professional and business services, life sciences, consumer products, and retail. Our Commercial professionals use their deep industry, functional and technical expertise to deliver our digital services and software products, financial advisory (special situation advisory and corporate finance advisory) consulting services, and strategy and innovation consulting services. In December 2024, we expanded our Commercial consulting and digital services offerings through the acquisition of AXIA Consulting, a leading provider of supply chain-focused consulting and technology solutions who has deep expertise in the industrials and manufacturing and retail sectors.
Current wording
Our Commercial segment is focused on serving industries and organizations facing significant disruption and regulatory change by helping them adapt to rapidly changing environments and accelerate business transformation. Our Commercial professionals work primarily with six primary buyers: the chief executive officer, the chief financial officer, the chief strategy officer, the chief human resources officer, the chief operating officer, and organizational advisors, including lenders and law firms. We have a deep focus on serving organizations in the financial services, energy and utilities, industrials and manufacturing industries and the public sector while opportunistically serving commercial industries more broadly, including professional and business services, life sciences, consumer products, and retail. Our Commercial professionals use their deep industry, functional and technical expertise to deliver our digital services and software products, financial advisory (special situation advisory and corporate finance advisory) consulting services, and strategy and innovation consulting services. In December 2024, we expanded our Commercial consulting and digital services offerings through the acquisition of AXIA Consulting, Inc. (“AXIA Consulting”), a leading provider of supply chain-focused consulting and technology solutions who has deep expertise in the industrials and manufacturing and retail sectors.
Previous wording
Selling, general and administrative expenses consist primarily of compensation costs for our support personnel, which includes salaries, performance bonuses, share-based compensation, signing and retention bonuses, payroll taxes, benefits and deferred compensation expense attributable to the change in market value of our deferred compensation liability. Changes in the market value of our deferred compensation liability are offset with the changes in market value of investments that are used to fund our deferred compensation liability, which are recorded within other income (expense), net. Also included in selling, general and administrative expenses are third-party professional fees, software licenses and data hosting expenses, rent and other office-related expenses, sales- and marketing-related expenses, recruiting and training expenses, and practice administration and meeting expenses.
Current wording
Selling, general and administrative expenses primarily consists of compensation costs for our support personnel, which includes salaries, performance bonuses, share-based compensation, signing and retention bonuses, payroll taxes, benefits and deferred compensation expense attributable to the change in market value of our deferred compensation liability. Changes in the market value of our deferred compensation liability are offset with the changes in market value of investments that are used to fund our deferred compensation liability, which are recorded within other income (expense), net. Also included in selling, general and administrative expenses are third-party professional fees, software licenses and data hosting expenses, rent and other office-related expenses, sales- and marketing-related expenses, recruiting and training expenses, and practice administration and meeting expenses.
Previous wording
Unrealized losses (gains) on preferred stock investment: We exclude the effect of unrealized losses and gains related to changes in the fair value of our preferred stock investment in a hospital-at-home company arising from observable price changes or impairment losses. These unrealized losses and gains are included as a component of other income (expense), net. We believe that these unrealized losses and gains are not indicative of the ongoing performance of our business and their exclusion permits comparability with prior periods.
Current wording
Unrealized losses (gains) on long-term investments: We exclude the effect of unrealized losses and gains related to our long-term investments, which include non-cash credit-related impairment charges on our convertible debt investment in Shorelight Holdings, LLC and changes in the fair value of our equity investment in a hospital-at-home company arising from observable price changes or impairment charges. These unrealized losses and gains are included as a component of other income (expense), net on our consolidated statements of operations. We believe these unrealized losses and gains are not indicative of the ongoing performance of our business and their exclusion permits comparability with prior periods.
Previous wording
Highlights from the first quarter of 2025 include:
Current wording
Highlights from the second quarter of 2025 include the following:
Previous wording
•Net income as a percentage of total revenues increased to 6.1% for the first quarter of 2025, compared to 5.0% for the first quarter of 2024.
Current wording
•Net income as a percentage of total revenues was 4.7% for the second quarter of 2025, compared to 9.8% for the second quarter of 2024.
Previous wording
•Adjusted EBITDA as a percentage of revenues before reimbursable expenses increased to 10.5% for the first quarter of 2025, compared to 9.5% for the first quarter of 2024.
Current wording
•Adjusted EBITDA as a percentage of revenues before reimbursable expenses increased to 15.1% for the second quarter of 2025, compared to 15.0% for the second quarter of 2024.
Previous wording
•Adjusted diluted EPS increased 36.6% to $1.68 for the first quarter of 2025, compared to $1.23 for the first quarter of 2024.
Current wording
•Adjusted diluted EPS increased 12.5% to $1.89 for the second quarter of 2025, compared to $1.68 for the second quarter of 2024.
Previous wording
•Returned $72.9 million to shareholders in the first quarter of 2025 by repurchasing 508,611 shares of our common stock.
Current wording
•Returned $133.9 million to shareholders in the first six months of 2025 by repurchasing 938,280 shares of our common stock.
Previous wording
Revenues before reimbursable expenses within our Consulting and Managed Services capability increased 11.1% in the first quarter of 2025 to $223.9 million, compared to $201.6 million in the first quarter of 2024; and reflected strengthened demand in our Healthcare and Education segments, offset by a decrease in demand in our Commercial segment. The utilization rate within our Consulting capability increased to 74.1% in the first quarter of 2025, compared to 70.2% in the first quarter of 2024.
Current wording
Revenues before reimbursable expenses within our Consulting and Managed Services capability increased 4.9% in the second quarter of 2025 to $229.1 million, compared to $218.3 million in the second quarter of 2024; and reflected strengthened demand in our Healthcare and Education segments, partially offset by a decrease in demand in our Commercial segment. The utilization rate within our Consulting capability increased to 77.0% in the second quarter of 2025, compared to 73.7% in the second quarter of 2024.
Previous wording
Revenues before reimbursable expenses within our Digital capability increased 11.2% in the first quarter of 2025 to $171.8 million, compared to $154.4 million in the first quarter of 2024; and reflected strengthened demand in our Commercial and Education segments, including $11.9 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting in December 2024, partially offset by a decrease in demand in our Healthcare segment. The utilization rate within our Digital capability increased to 78.2% in the first quarter of 2025, compared to 74.3% in the first quarter of 2024.
Current wording
Revenues before reimbursable expenses within our Digital capability increased 13.1% in the second quarter of 2025 to $173.4 million, compared to $153.3 million in the second quarter of 2024; and reflected strengthened demand in our Commercial and Education segments, partially offset by a decrease in demand in our Healthcare segment. The increase includes $13.1 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting in December 2024. The utilization rate within our Digital capability increased to 77.8% in the second quarter of 2025, compared to 75.0% in the second quarter of 2024.
Previous wording
Our total number of revenue-generating professionals, excluding Managed Services professionals, increased 3.1% to 4,726 as of March 31, 2025, compared to 4,584 as of March 31, 2024, as a result of the acquisitions completed since the first quarter of 2024 and hiring to support the overall increase in demand for our services. 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. We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services as employee compensation costs are the most significant portion of our operating expenses.
Current wording
Our total number of revenue-generating professionals, excluding Managed Services professionals, increased 7.8% to 4,963 as of June 30, 2025, compared to 4,604 as of June 30, 2024, as a result of the acquisitions completed since the second quarter of 2024 and hiring to support the overall increase in demand for our services. The number of Managed Services professionals increased 54.2% to 1,918 as of June 30, 2025 from 1,244 as of June 30, 2024, as a result of hiring to support the increase in demand for our services. We proactively plan and manage the size and composition of our workforce and take actions as needed to address changes in the anticipated demand for our services as employee compensation costs are the most significant portion of our operating expenses.
Previous wording
In the first three months of 2025, we deployed $72.9 million of capital to repurchase 508,611 shares of our common stock, representing 2.9% of our common stock outstanding as of December 31, 2024.
Current wording
In the first six months of 2025, we deployed $133.9 million of capital to repurchase 938,280 shares of our common stock, representing 5.3% of our common stock outstanding as of December 31, 2024.
Previous wording
The following table sets forth, for the periods indicated, selected segment and consolidated operating results and other operating data, including non-GAAP measures.
Current wording
The following tables set forth, for the periods indicated, selected segment and consolidated operating results and other operating data, including non-GAAP measures.
Previous wording
The number of Managed Services revenue-generating professionals within our Healthcare segment was 1,568 and 1,087 as of March 31, 2025 and 2024, respectively.
Current wording
The number of Managed Services revenue-generating professionals within our Healthcare segment was 1,807 and 1,116 as of June 30, 2025 and 2024, respectively.
Previous wording
The number of Managed Services revenue-generating professionals within our Education segment was 111 and 132 as of March 31, 2025 and 2024, respectively.
Current wording
The number of Managed Services revenue-generating professionals within our Education segment was 111 and 128 as of June 30, 2025 and 2024, respectively.
Previous wording
(3) Managed Services capability revenues before reimbursable expenses within our Healthcare segment was $18.3 million and $17.5 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
(3) Managed Services capability revenues before reimbursable expenses within our Healthcare segment was $21.0 million and $16.7 million for the three months ended June 30, 2025 and 2024, respectively; and $39.3 million and $34.2 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Managed Services capability revenues before reimbursable expenses within our Education segment was $7.4 million for both the three months ended March 31, 2025 and 2024.
Current wording
Managed Services capability revenues before reimbursable expenses within our Education segment was $7.4 million and $6.8 million for the three months ended June 30, 2025 and 2024, respectively; and $14.7 million and $14.2 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
Revenues before reimbursable expenses increased $39.7 million, or 11.2%, to $395.7 million for the first quarter of 2025 from $356.0 million for the first quarter of 2024. The overall increase in revenues before reimbursable expenses reflects strength in demand for our Consulting and Managed Services capabilities within our Healthcare and Education segments; and an increase in demand for our Digital capabilities within our Commercial and Education segments, including $11.9 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting in December 2024. These increases were partially offset by a decrease in demand for our Consulting and Managed Services capability within our Commercial segment. Additional information on our revenues before reimbursable expense by segment follows.
Current wording
Revenues before reimbursable expenses increased $30.9 million, or 8.3%, to $402.5 million for the second quarter of 2025 from $371.7 million for the second quarter of 2024. The overall increase in revenues before reimbursable expenses reflects continued strength in demand for our Digital capabilities within our Commercial and Education segments and our Consulting and Managed Services capabilities within our Healthcare and Education segments. The increase includes $13.1 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting in December 2024. These increases were partially offset by decreases in demand for our Consulting and Managed Services capability within our Commercial segment and our Digital capability within our Healthcare segment. Additional information on our revenues before reimbursable expenses by segment follows.
Previous wording
•Healthcare revenues before reimbursable expenses increased $17.7 million, or 9.8%, driven by strengthened demand for our performance improvement and financial advisory solutions within our Consulting and Managed Services capability. These increases in demand were partially offset by a decrease in revenues before reimbursable expenses due to the divestiture of our Studer Education practice in the fourth quarter of 2024 and a decrease in revenues before reimbursable expenses for our technology and analytics services within our Digital capability. The Studer Education business generated $3.4 million of revenues before reimbursable expenses in the first quarter of 2024.
Current wording
•Healthcare revenues before reimbursable expenses increased $7.7 million, or 4.1%, driven by continued strength in demand for our performance improvement and financial advisory solutions within our Consulting and Managed Services capability. These increases in demand were partially offset by a decrease in demand for our technology and analytics services within our Digital capability and a decrease in revenues before reimbursable expenses due to the divestiture of our Studer Education practice in the fourth quarter of 2024. The Studer Education business generated $3.5 million of revenues before reimbursable expenses in the second quarter of 2024. Revenues before reimbursable expenses in the second quarter of 2025 included $0.6 million of incremental revenues from our acquisitions of AXIA Consulting and Eclipse Insights.
Previous wording
The number of revenue-generating professionals, excluding Managed Services professionals, within our Healthcare segment grew 1.4% to 1,209 as of March 31, 2025, compared to 1,192 as of March 31, 2024.
Current wording
The number of revenue-generating professionals, excluding Managed Services professionals, within our Healthcare segment grew 8.7% to 1,329 as of June 30, 2025, compared to 1,223 as of June 30, 2024. Our acquisition of Eclipse Insights in June 2025 added approximately 40 revenue-generating professionals.
Previous wording
•Education revenues before reimbursable expenses increased $11.2 million, or 10.0%, driven by strengthened demand for our strategy and operations solution within our Consulting and Managed Services capability; $3.0 million of incremental revenues before reimbursable expenses from our acquisition of GG+A completed in March 2024; an increase in demand for our software products within our Digital capability; and an additional $0.8 million of incremental revenues before reimbursable expenses from other acquisitions completed since the first quarter of 2024.
Current wording
•Education revenues before reimbursable expenses increased $6.5 million, or 5.3%, driven by continued strength in demand for our strategy and operations solution within our Consulting and Managed Services capability, as well as strengthened demand for our software products within our Digital capability. Revenues before reimbursable expenses in the second quarter of 2025 included $2.2 million of incremental revenues from our acquisitions of AXIA Consulting, Advancement Resources and Halpin.
Previous wording
The number of revenue-generating professionals within our Education segment, excluding Managed Services professionals, grew 6.2% to 1,167 as of March 31, 2025, compared to 1,099 as of March 31, 2024. Our acquisitions of Advancement Resources and Halpin in March 2025 added approximately 30 revenue-generating professionals.
Current wording
The number of revenue-generating professionals within our Education segment, excluding Managed Services professionals, grew 4.8% to 1,169 as of June 30, 2025, compared to 1,115 as of June 30, 2024. Our acquisitions of Advancement Resources and Halpin in March 2025 added approximately 30 revenue-generating professionals.
Previous wording
•Commercial revenues before reimbursable expenses increased $10.8 million, or 17.0%, which included $11.2 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting completed in December 2024 and an increase in demand for our technology and analytics services within our Digital capability. These increases were partially offset by decreases in demand for our strategy and innovation and financial advisory solutions within our Consulting and Managed Services capability.
Current wording
•Commercial revenues before reimbursable expenses increased $16.6 million, or 28.2%, which included $12.3 million of incremental revenues before reimbursable expenses from our acquisition of AXIA Consulting completed in December 2024 and strengthened demand for our technology and analytics services within our Digital capability. These increases were partially offset by decreases in demand for our financial advisory and strategy and innovation solutions within our Consulting and Managed Services capability.
Previous wording
The number of revenue-generating professionals within our Commercial segment, the majority of which provide services across all of our industries, grew 2.5% to 2,350 as of March 31, 2025, compared to 2,293 as of March 31, 2024, including our acquisition of AXIA Consulting in December 2024 which added approximately 130 revenue-generating professionals.
Current wording
The number of revenue-generating professionals within our Commercial segment, the majority of which provide services across all of our industries, grew 8.8% to 2,465 as of June 30, 2025, compared to 2,266 as of June 30, 2024, including our acquisition of AXIA Consulting in December 2024 which added approximately 130 revenue-generating professionals.
Previous wording
Direct costs increased $24.7 million, or 9.8%, to $278.0 million for the first quarter of 2025 from $253.3 million for the first quarter of 2024. The $24.7 million increase primarily related to a $25.5 million increase in compensation costs for our revenue-generating professionals. The increase in compensation costs reflects our investment to grow our talented team to meet increased market demand and is primarily attributable to a $16.5 million increase in salaries and related expenses driven by increased headcount and annual salary increases that went into effect in the first quarter of 2025, a $7.6 million increase in performance bonus expense, and a $1.1 million increase in share-based compensation expense. The increase in share-based compensation expense was primarily the result of paying a larger portion of our annual performance bonus in share-based equity grants compared to the prior year. As a percentage of revenues before reimbursable expenses, direct costs decreased to 70.3% during the first quarter of 2025, compared to 71.2% during the first quarter of 2024. This decrease was primarily due to revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals.
Current wording
Direct costs increased $20.4 million, or 8.2%, to $269.0 million for the second quarter of 2025 from $248.6 million for the second quarter of 2024. The $20.4 million increase primarily related to a $12.7 million increase in compensation costs for our revenue-generating professionals and a $5.7 million increase in contractor expenses. The increase in compensation costs reflects our investment to grow our talented team to meet increased market demand and is primarily attributable to a $15.4 million increase in salaries and related expenses driven by increased headcount and annual salary increases that went into effect in the first quarter of 2025 and a $1.1 million increase in signing, retention and other bonus expense; partially offset by a $2.9 million decrease in performance bonus expense. As a percentage of revenues before reimbursable expenses, direct costs decreased to 66.8% during the second quarter of 2025, compared to 66.9% during the second quarter of 2024. This decrease was primarily due to the decrease in performance bonus expense for our revenue-generating professionals; largely offset by an increase in contractor expenses, as a percentage of revenues before reimbursable expenses.
Previous wording
Selling, general and administrative expenses increased by $3.9 million, or 5.4%, to $76.6 million in the first quarter of 2025 from $72.7 million in the first quarter of 2024. The $3.9 million increase includes a $2.8 million increase in compensation costs for our support personnel and a $2.0 million increase in software and data hosting expense; partially offset by a $3.5 million decrease in legal expenses. The $2.8 million increase in compensation costs for our support personnel was driven by a $4.0 million increase in salaries and related expenses and a $2.6 million increase in performance bonus expense; partially offset by a $3.4 million decrease in deferred compensation expense attributable to the change in market value of our deferred compensation liability. The decrease in deferred compensation expense is offset by an increase in the loss recognized for the change in the market value of investments that are used to fund our deferred compensation liability and recognized in other income (expense), net. As a percentage of revenues before reimbursable expenses, selling, general and administrative expenses decreased to 19.4% during the first quarter of 2025, compared to 20.4% during the first quarter of 2024, which was primarily driven by the decreases in legal expenses and deferred compensation expense; partially offset by an increase in performance bonus expense for our support personnel, as a percentage of revenues before reimbursable expenses.
Current wording
Selling, general and administrative expenses increased by $8.8 million, or 12.3%, to $80.2 million in the second quarter of 2025 from $71.4 million in the second quarter of 2024. The $8.8 million increase includes a $4.6 million increase in compensation costs for our support personnel; a $1.4 million increase in software and data hosting expenses; a $1.2 million increase in legal expenses, driven by professional fees for our programmatic acquisition activity; and a $1.0 million increase in promotion and marketing expenses. These increases were partially offset by a $2.2 million decrease in bad debt expense. The $4.6 million increase in compensation costs for our support personnel was driven by a $3.0 million increase in deferred compensation expense attributable to the change in market value of our deferred compensation liability and a $2.3 million increase in salaries and related expenses. The increase in deferred compensation expense is offset by an increase in the gain recognized for the change in the market value of investments that are used to fund our deferred compensation liability and recognized in other income (expense), net. As a percentage of revenues before reimbursable expenses, selling, general and administrative expenses increased to 19.9% during the second quarter of 2025, compared to 19.2% during the second quarter of 2024, which was primarily driven by the increase in our deferred compensation expense attributable to the change in market value of our deferred compensation liability, as a percentage of revenues before reimbursable expenses.
Previous wording
Depreciation and amortization expense increased $1.0 million, or 16.4%, to $6.9 million in the first quarter of 2025, compared to $6.0 million in the first quarter of 2024. The $1.0 million increase in depreciation and amortization expense was primarily attributable to increases in amortization of internally developed software and intangible assets acquired in business acquisitions.
Current wording
Depreciation and amortization expense increased $1.1 million, or 18.0%, to $7.1 million in the second quarter of 2025, compared to $6.0 million in the second quarter of 2024. The $1.1 million increase in depreciation and amortization expense was primarily attributable to increases in amortization of intangible assets acquired in business acquisitions and internally developed software.
Previous wording
Operating income increased $12.8 million, or 64.3%, to $32.7 million in the first quarter of 2025 from $19.9 million in the first quarter of 2024. Operating margin, which is defined as operating income expressed as a percentage of revenues before reimbursable expenses was 8.3% for the three months ended March 31, 2025, compared to 5.6% for the three months ended March 31, 2024.
Current wording
Operating income decreased $13.7 million, or 23.1%, to $45.7 million in the second quarter of 2025 from $59.4 million in the second quarter of 2024. Operating margin, which is defined as operating income expressed as a percentage of revenues before reimbursable expenses was 11.3% for the three months ended June 30, 2025, compared to 16.0% for the three months ended June 30, 2024.
Previous wording
Interest expense, net of interest income increased $0.5 million to $5.6 million in the first quarter of 2025 from $5.1 million in the first quarter of 2024, which was primarily attributable to higher interest rates under our Amended Credit Facility during the first quarter of 2025 compared to the first quarter of 2024. See “Liquidity and Capital Resources” below and Note 7 “Financing Arrangements” within the notes to our consolidated financial statements for additional information about our Amended Credit Facility.
Current wording
Interest expense, net of interest income increased $1.3 million to $9.3 million in the second quarter of 2025 from $8.0 million in the second quarter of 2024, which was primarily attributable to higher levels of borrowing and higher interest rates under our Amended Credit Facility during the second quarter of 2025 compared to the second quarter of 2024. See “Liquidity and Capital Resources” below and Note 8 “Financing Arrangements” within the notes to our consolidated financial statements for additional information about our Amended Credit Facility.
Previous wording
Other income (expense), net totaled expense of $5.6 million in the first quarter of 2025, compared to income of $2.8 million in the first quarter of 2024. In the first quarter of 2025, we recognized a non-cash impairment loss of $4.2 million on our preferred stock investment in a hospital-at-home company; a $1.1 million loss for the market value of our investments that are used to fund our deferred compensation liability; and $0.4 million of foreign currency transaction losses. In the first quarter of 2024, we recognized a $2.3 million gain for the market value of our deferred compensation investments and $0.5 million of foreign currency transaction gains. The change in the market value of our investments that are used to fund our deferred compensation liability are offset with deferred compensation expense which is recognized as a component of selling, general and administrative expenses on our consolidated statements of operations. See Note 10 “Fair Value of Financial Instruments” within the notes to our consolidated financial statements for additional information on our preferred stock investment. See Note 9 “Derivative Instruments and Hedging Activity” within the notes to our consolidated financial statements for additional information on our foreign exchange forward contracts.
Current wording
Other income (expense), net totaled expense of $8.7 million in the second quarter of 2025, compared to income of $0.6 million in the second quarter of 2024. In the second quarter of 2025, we recognized a pre-tax $11.1 million non-cash credit-related impairment charge related to our convertible debt investment in a third-party, a non-cash impairment charge of $0.8 million on our equity investment in a hospital-at-home company, and $0.2 million of foreign currency transaction losses. These losses were offset by a $3.5 million gain for the market value of our investments that are used to fund our deferred compensation liability. In the second quarter of 2024, we recognized a $0.5 million gain for the market value of our deferred compensation investments and $0.1 million of foreign currency transaction gains. The change in the market value of our investments that are used to fund our deferred compensation liability are offset with deferred compensation expense which is recognized as a component of selling, general and administrative expenses on our consolidated statements of operations. See Note 11 “Fair Value of Financial Instruments” within the notes to our consolidated financial statements for additional information on our convertible debt and equity investments. See Note 10 “Derivative Instruments and Hedging Activity” within the notes to our consolidated financial statements for additional information on our foreign exchange forward contracts.
Previous wording
For the three months ended March 31, 2024, our effective tax rate was (2.5)% as we recognized an income tax benefit of $0.4 million on income of $17.6 million. The effective tax rate of (2.5)% was more favorable than the statutory rate, inclusive of state income taxes, of 26.1%, primarily due to a discrete tax benefit for share-based compensation awards that vested during the quarter.
Current wording
For the three months ended June 30, 2024, our effective tax rate was 28.1% as we recognized income tax expense of $14.6 million on income of $52.1 million. The effective tax rate of 28.1% was less favorable than the statutory rate, inclusive of state income taxes, of 26.1%, primarily due to certain nondeductible expense items.
Previous wording
Adjusted EBITDA increased $7.7 million, or 22.7%, to $41.5 million in the first quarter of 2025 from $33.8 million in the first quarter of 2024. The increase in adjusted EBITDA was primarily attributable to the increases in Healthcare and Education operating income, excluding the impact of segment depreciation and amortization and segment restructuring charges; partially offset by the decrease in Commercial operating income, excluding the impact of segment depreciation and amortization and segment restructuring charges, and the increase in unallocated corporate expenses, excluding the impact of the change in the market value of our deferred compensation liability and transaction-related expenses.
Current wording
Adjusted EBITDA increased $4.9 million, or 8.8%, to $60.6 million in the second quarter of 2025 from $55.7 million in the second quarter of 2024. The increase in adjusted EBITDA was primarily attributable to the increases in segment operating income for all three operating segments, excluding segment depreciation and amortization and segment restructuring charges; partially offset by the increase in unallocated corporate expenses, excluding the impact of the change in the market value of our deferred compensation liability and transaction-related expenses.
Previous wording
Adjusted net income increased $7.9 million, or 33.8%, to $31.1 million in the first quarter of 2025, compared to $23.3 million in the first quarter of 2024. As a result of the increase in adjusted net income as well as a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan, adjusted diluted earnings per share increased to $1.68 for the first quarter of 2025 compared to $1.23 for the first quarter of 2024.
Current wording
Adjusted net income increased $2.7 million, or 8.8%, to $33.7 million in the second quarter of 2025, compared to $30.9 million in the second quarter of 2024. As a result of the increase in adjusted net income as well as a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan, adjusted diluted earnings per share increased to $1.89 for the second quarter of 2025 compared to $1.68 for the second quarter of 2024.
Previous wording
Operating expenses for the first quarter of 2025 increased $27.9 million, or 8.1%, over the first quarter of 2024.
Current wording
Operating expenses for the first six months of 2025 increased $72.4 million, or 10.9%, over the first six months of 2024.
Previous wording
Restructuring charges for the first quarter of 2025 were $1.3 million, compared to $2.3 million for the first quarter of 2024. The $1.3 million restructuring charge recognized in the first quarter of 2025 included a $0.7 million non-cash lease impairment charge driven by updated sublease assumptions for a previously vacated office space and $0.6 million of rent and related expenses, net of sublease income, for our previously vacated office spaces.
Current wording
Restructuring charges for the first six months of 2025 were $1.9 million, compared to $4.4 million for the first six months of 2024. The $1.9 million of restructuring charges recognized in the first six months of 2025 primarily consisted of $1.0 million of rent and related expenses, net of sublease income, for our previously vacated office spaces and a $0.7 million non-cash lease impairment charge driven by updated sublease assumptions for a previously vacated office space.
Previous wording
The $2.3 million of restructuring charges recognized in the first quarter of 2024 included $1.0 million of severance-related expenses; $0.8 million of non-cash lease impairment charges driven by updated sublease assumptions for our previously vacated office spaces; and $0.5 million of rent and related expenses, net of sublease income, for our previously vacated office spaces.
Current wording
The $4.4 million of restructuring charges incurred in the first six months of 2024 included a $1.4 million non-cash impairment charge on the right-of-use operating lease asset and fixed assets for the office space previously occupied by GG+A, which we exited in the second quarter of 2024. Additionally, in the first six months of 2024, we recognized $1.1 million of rent and related expenses, net of sublease income, for previously vacated office spaces; $1.0 million of severance-related expenses; and $0.8 million related to non-cash lease impairment charges driven by updated sublease assumptions for our previously vacated office spaces.
Previous wording
•Healthcare operating income increased $13.6 million, or 31.9%, primarily due to the increase in revenues before reimbursable expenses, as well as decreases in practice administration and meeting expenses, contractor expenses, and salaries and related expenses for our support personnel; partially offset by an increase in compensation costs for our revenue-generating professionals. The increase in compensation costs for our revenue-generating professionals was primarily driven by an increase in headcount, annual salary increases that went into effect in the first quarter of 2025, and an increase in performance bonus expense. Healthcare operating margin increased to 28.4% from 23.6% primarily due to revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals and the decreases in contractor expenses, practice administration and meeting expenses, and salaries and related expenses for our support personnel.
Current wording
•Healthcare operating income increased $18.0 million, or 18.4%, primarily due to the increase in revenues before reimbursable expenses, as well as decreases in practice administration and meeting expenses, salaries and related expenses for our support personnel, and bad debt expense; partially offset by increases in compensation costs for our revenue-generating professionals and technology costs. The increases in compensation costs for our revenue-generating professionals were primarily driven by an increase in headcount and annual salary increases that went into effect in the first quarter of 2025, as well as an increase in performance bonus expense. Healthcare operating margin increased to 29.3% from 26.4% primarily due to revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals and decreases in salaries and related expenses for our support personnel and practice administration and meeting expenses.
Previous wording
•Education operating income increased $1.1 million, or 5.0%, primarily due to the increase in revenues before reimbursable expenses; largely offset by increases in compensation costs for our revenue-generating professionals and support personnel, practice administration and meeting expenses, and amortization of internally developed software. The increases in compensation costs for our revenue-generating professionals and support personnel were primarily driven by an increase in headcount, annual salary increases that went into effect in the first quarter of 2025, and an increase in performance bonus expense for our revenue-generating professionals. Education operating margin decreased to 18.8% from 19.7% primarily driven by the increases in practice administration and meeting expenses, salaries and related expenses for our support personnel, and amortization of internally developed software, as percentages of revenues before reimbursable expenses; partially offset by revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals.
Current wording
•Education operating income increased $2.6 million, or 5.0%, primarily due to the increase in revenues before reimbursable expenses; partially offset by increases in compensation costs for our revenue-generating professionals and support personnel, amortization of internally developed software, practice administration and meeting expenses, contractor expenses, project costs, and promotion and marketing expenses. The increases in compensation costs for our revenue-generating professionals and support personnel were primarily driven by an increase in headcount and annual salary increases that went into effect in the first quarter of 2025. Education operating margin decreased to 22.0% from 22.5% primarily driven by the increases in salaries and related expenses for our support personnel, amortization of internally developed software, and practice administration and meeting expenses, as percentages of revenues before reimbursable expenses; partially offset by revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals.
Previous wording
•Commercial operating income decreased $2.7 million, or 19.5%, primarily due to increases in compensation costs for our revenue-generating professionals and support personnel and contractor expenses; partially offset by the increase in revenues before reimbursable expenses. The increase in compensation costs was primarily due to the increased headcount, driven by our acquisition of AXIA Consulting, and annual salary increases that went into effect in the first quarter of 2025, as well as an increase in performance bonus expense. Commercial operating margin decreased to 15.2% from 22.1% primarily due to the increases in compensation costs for our revenue-generating professionals and support personnel and contractor expenses, as percentages of revenues.
Current wording
•Commercial operating income increased $0.7 million, or 3.2%, primarily due to the increase in revenues before reimbursable expenses; largely offset by increases in compensation costs for our revenue-generating professionals and support personnel and contractor expenses. The increase in compensation costs for our revenue-generating professionals and support personnel was primarily due to the increased headcount, driven by our acquisition of AXIA Consulting, and annual salary increases that went into effect in the first quarter of 2025, as well as an increase in performance bonus expense. Commercial operating margin decreased to 15.9% from 18.8% primarily due to the increases in contractor expenses and salaries and related expenses for our revenue-generating professionals, as percentages of revenues before reimbursable expenses, partially offset by revenue growth that outpaced the increase in performance bonus expense for our revenue-generating professionals.
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Revenues before reimbursable expenses by segment and capability for the six months ended June 30, 2025 and 2024 were as follows:
Current report — wording carried from elsewhere
•Healthcare revenues before reimbursable expenses increased $25.5 million, or 6.9%, driven by continued strength in demand for our performance improvement and financial advisory solutions within our Consulting and Managed Services capability. These increases were partially offset by a decrease in revenues before reimbursable expenses due to the divestiture of our Studer Education practice in the fourth quarter of 2024 and a decrease in revenues before reimbursable expenses for our technology and analytics services within our Digital capability. The Studer Education business generated $6.9 million of revenues before reimbursable expenses in the first six months of 2024. Revenues before reimbursable expenses in the first six months of 2025 included $0.8 million of incremental revenues from our acquisitions of AXIA Consulting and Eclipse Insights.
Current report — wording carried from elsewhere
The number of revenue-generating professionals within our Education segment, excluding Managed Services professionals, grew 4.8% to 1,169 as of June 30, 2025, compared to 1,115 as of June 30, 2024. Our acquisitions of Advancement Resources and Halpin in March 2025 added approximately 30 revenue-generating professionals.
Current report — wording carried from elsewhere
The number of revenue-generating professionals within our Commercial segment, the majority of which provide services across all of our industries, grew 8.8% to 2,465 as of June 30, 2025, compared to 2,266 as of June 30, 2024, including our acquisition of AXIA Consulting in December 2024 which added approximately 130 revenue-generating professionals.
Current report — wording carried from elsewhere
Operating expenses and operating expenses as a percentage of revenues before reimbursable expenses were as follows:
Current report — wording carried from elsewhere
Reimbursable expenses are billed to clients at cost and primarily relate to travel and out-of-pocket expenses incurred in connection with client engagements. These expenses are also included in total revenues. We manage our business on the basis of revenues before reimbursable expenses, which we believe is the most accurate reflection of our services because it eliminates the effect of reimbursable expenses that are also included as a component of operating expenses.
Current report — wording carried from elsewhere
See Note 11 “Fair Value of Financial Instruments” within the notes to our consolidated financial statements for additional information on the fair value of contingent consideration liabilities.
Current report — wording carried from elsewhere
Operating income and operating margin for each of our segments as well as unallocated corporate expenses were as follows:
Current report — wording carried from elsewhere
Interest expense, net of interest income increased $1.8 million to $14.9 million in the first six months of 2025 from $13.1 million in the first six months of 2024, which was primarily attributable to higher levels of borrowing and higher interest rates under our Amended Credit Facility during the first six months of 2025 compared to the first six months of 2024. See “Liquidity and Capital Resources” below and Note 8 “Financing Arrangements” within the notes to our consolidated financial statements for additional information about our senior secured credit facility.
Current report — wording carried from elsewhere
Net Income and Earnings per Share
Current report — wording carried from elsewhere
As of June 30, 2025, the Company had a $600 million senior secured revolving credit facility (the “Revolver”) and a $275 million senior secured term loan facility (the “Term Loan”), subject to the terms of the Third Amended and Restated Credit Agreement dated as of November 15, 2022 (as amended, the “Existing Credit Agreement”), both of which fully mature on November 15, 2027. In July 2025, the Company entered into the Fourth Amended and Restated Credit Agreement (the "Amended Credit Agreement”), which amended and restated, in its entirety, the Existing Credit Agreement.