Huron Consulting Group Inc.
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
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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, 2026 · Filed Jul 28, 2026
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 2026-03-31; filed 2026-05-05.
0001289848-26-000082
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0001628280-26-050176
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 183 previous paragraphs and 221 current paragraphs.
109 unchanged; 56 reworded; 45 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 (45)
Current report
•Revenues before reimbursable expenses (RBR) increased $63.1 million, or 15.7%, to $465.6 million for the second quarter of 2026 from $402.5 million for the second quarter of 2025.
Current report
•Net income as a percentage of total revenues increased to 6.6% for the second quarter of 2026, compared to 4.7% for the second quarter of 2025. Results for the second quarter of 2025 include an $8.2 million non-cash credit-related impairment charge, net of tax, related to our convertible debt investment in a third-party.
Current report
•Diluted EPS increased 75.2% to $1.91 for the second quarter of 2026 from $1.09 for the second quarter of 2025. Results for the second quarter of 2025 include the non-cash credit-related impairment charge on our convertible debt investment, which had an unfavorable $0.46 impact on diluted EPS in the prior year period.
Current report
RBR increased $63.1 million, or 15.7%, to $465.6 million for the second quarter of 2026 from $402.5 million for the second quarter of 2025. This growth reflects strength in demand across all three of our operating segments and across both the Consulting and Managed Services and Digital capabilities. The increase includes $19.5 million of incremental RBR from our acquisitions completed since March 31, 2025. Excluding the $19.5 million of incremental RBR from our acquisitions, RBR grew 10.8% organically.
Current report
Net income increased $11.8 million, or 60.8%, to $31.2 million for the three months ended June 30, 2026 from $19.4 million for the same period last year. The second quarter of 2025 includes the $8.2 million non-cash credit-related impairment charge, net of tax, related to our convertible debt investment in a third-party. Diluted earnings per share for the second quarter of 2026 increased 75.2% to $1.91 from $1.09 for the second quarter of 2025 driven by the increase in net income as well as 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 recognized in the second quarter of 2025 had an unfavorable $0.46 impact on diluted EPS in the prior year period. Adjusted diluted earnings per share, which excludes the impact of the non-cash impairment charge in 2025, increased 30.2% to $2.46 for the second quarter of 2026, compared to $1.89 for the second quarter of 2025.
Current report
Adjusted EBITDA increased $12.1 million, or 19.9%, to $72.6 million, or 15.6% of RBR, for the second quarter of 2026, compared to $60.6 million, or 15.1% of RBR, for the same period last year.
Current report
The number of Managed Services professionals within our Healthcare segment was 3,794 and 1,807 as of June 30, 2026 and 2025, respectively. This increase includes our acquisition of RelateCare in the second quarter of 2026, which added approximately 1,100 Managed Services professionals.
Current report
The number of Managed Services professionals within our Education segment was 119 and 88 as of June 30, 2026 and 2025, respectively.
Current report
•Healthcare RBR increased $34.5 million, or 17.4%, driven by strengthened demand for our Healthcare managed services, performance improvement, strategy, and financial advisory solutions within our Consulting and Managed Services capability, as well as strengthened demand for our technology and analytics services within our Digital capability; partially offset by a decrease in RBR from our software products within our Digital capability. RBR in the second quarter of 2026 included $10.1 million of incremental RBR from our acquisitions of RelateCare, Eclipse Insights, and AXIOM.
Current report
The number of revenue-generating professionals, excluding Managed Services professionals, within our Healthcare segment grew 17.2% to 1,738 as of June 30, 2026, compared to 1,483 as of June 30, 2025. Our acquisition of AXIOM added approximately 40 revenue-generating professionals in 2025. The number of Managed Services revenue-generating professionals within our Healthcare segment grew to 3,794 as of June 30, 2026 from 1,807 as of June 30, 2025. This increase includes our acquisition of RelateCare in the second quarter of 2026, which added approximately 1,100 Managed Services professionals.
Current report
•Education RBR increased $10.1 million, or 7.8%, driven by strengthened demand for our technology and analytics services and software products within our Digital capability; partially offset by a decrease in RBR from our education and research consulting solution within our Consulting and Managed Services capability.
Current report
Direct costs increased $42.2 million, or 15.7%, to $311.2 million for the second quarter of 2026 from $269.0 million for the second quarter of 2025. The $42.2 million increase primarily related to a $41.5 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 $30.9 million increase in salaries and related expenses, driven by recent acquisitions, hiring to support the overall increase in demand for our services and annual salary increases that went into effect in the first quarter of 2026; a $9.0 million increase in performance bonus expense; and a $1.1 million increase in share-based compensation expense. Directs costs as a percentage of RBR was 66.8% for both the second quarter of 2026 and 2025.
Current report
Other Losses (Gains)
Current report
Other losses (gains) totaled a loss of $3.9 million in the second quarter of 2026 compared to a gain of $0.1 million in the second quarter of 2025. The $3.9 million of other losses in the second quarter of 2026 consisted of remeasurement losses to increase the fair value of our contingent consideration liabilities related to business combinations. The $0.1 million of other gains in the second quarter of 2025 consisted of a remeasurement gain to decrease the fair value of a contingent consideration liability related to a business combination.
Current report
Restructuring charges for the second quarter of 2026 were $0.4 million, compared to $0.6 million for the second quarter of 2025. The $0.4 million of restructuring charges recognized in the second quarter of 2026 included $0.7 million of rent and related expenses, net of sublease income, for our previously vacated office spaces, partially offset by a $0.2 million non-cash gain on lease modification on our office space in Hillsboro, Oregon. 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
•Healthcare operating income increased $10.3 million, or 17.2%, primarily due to the increase in RBR, as well as a decrease in 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 due to an increase in headcount, partially driven by our acquisition of RelateCare, and annual salary increases that went into effect in the first quarter of 2026, as well as an increase in performance bonus expense. Healthcare operating margin remained relatively flat at 30.1% in the second quarter of 2026, compared to 30.2% in the second quarter of 2025.
Current report
•Education operating income increased $5.1 million, or 15.7%, primarily due to the increase in RBR; 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 performance bonus expense as well as annual salary increases that went into effect in the first quarter of 2026. Education operating margin increased to 26.8% from 25.0% primarily driven by revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals and a decrease in project costs; partially offset by the increases in performance bonus expense, amortization of internally developed software, and share-based compensation expense for our revenue-generating professionals, as percentages of RBR.
Current report
Other income (expense), net totaled income of $4.6 million in the second quarter of 2026, compared to expense of $8.7 million in the second quarter of 2025. In the second quarter of 2026, we recognized a $5.8 million gain on the market value of our investments that are used to fund our deferred compensation liability and a $1.1 million gain resulting from a reduction to the credit allowance recognized on our convertible debt investment in a third-party. These gains were partially offset by a non-cash impairment charge of $2.2 million on our equity investment in a hospital-at-home company and $0.1 million of foreign currency transaction losses. 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 on the market value of our investments that are used to fund our deferred compensation liability. 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.
Current report
For the three months ended June 30, 2026, our effective tax rate was 27.2% as we recognized income tax expense of $11.7 million on income of $42.9 million. The effective tax rate of 27.2% was less favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to certain nondeductible expense items and the inability to recognize tax benefits related to certain foreign and capital losses, partially offset by a tax benefit related to non-taxable gains on our investments used to fund our deferred compensation liability.
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 increased $11.8 million, or 60.8%, to $31.2 million for the three months ended June 30, 2026 from $19.4 million for the same period last year. The second quarter of 2025 includes the $8.2 million non-cash credit-related impairment charge, net of tax, related to our convertible debt investment in a third-party. Diluted earnings per share for the second quarter of 2026 increased to $1.91 from $1.09 for the second quarter of 2025 driven by the increase in net income as well as 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 recognized in the second quarter of 2025 had an unfavorable $0.46 impact on diluted EPS in the prior year period.
Current report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Current report
RBR increased $111.2 million, or 13.9%, to $909.3 million for the first six months of 2026 from $798.2 million for the first six months of 2025. This growth reflects strength in demand across all three of our operating segments and across both the Consulting and Managed Services and Digital capabilities. The increase includes $38.7 million of incremental RBR from our acquisitions completed since December 31, 2024. Excluding the $38.7 million of incremental RBR from our acquisitions, RBR grew 9.1% organically. Additional information on our RBR by segment follows.
Current report
The number of revenue-generating professionals, excluding Managed Services professionals, within our Healthcare segment grew 17.2% to 1,738 as of June 30, 2026, compared to 1,483 as of June 30, 2025. Our acquisition of AXIOM added approximately 40 revenue-generating professionals in 2025. The number of Managed Services revenue-generating professionals within our Healthcare segment grew to 3,794 as of June 30, 2026 from 1,807 as of June 30, 2025. This increase includes our acquisition of RelateCare in the second quarter of 2026, which added approximately 1,100 Managed Services professionals.
Current report
The number of revenue-generating professionals within our Education segment, excluding Managed Services professionals, decreased 10.2% to 1,070 as of June 30, 2026, compared to 1,192 as of June 30, 2025.
Current report
•Commercial RBR increased $35.2 million, or 23.5%, which reflects $20.2 million of incremental RBR from our acquisitions of WP&C and Treliant and strengthened demand for our financial advisory and strategy solutions within our Consulting and Managed Services capability; partially offset by a decrease in RBR from our technology and analytics services within our Digital capability.
Current report
Operating expenses for the first six months of 2026 increased $102.5 million, or 13.9%, over the first six months of 2025.
Current report
Direct Costs
Current report
Selling, General and Administrative Expenses
Current report
Selling, general and administrative expenses increased by $17.7 million, or 11.3%, to $174.5 million in the first six months of 2026 from $156.9 million in the first six months of 2025. The $17.7 million increase related to an $8.8 million increase in compensation costs for our support personnel and an $8.7 million increase in non-payroll costs. The $8.8 million increase in compensation costs for our support personnel was primarily driven by a $3.8 million increase in salaries and related expenses, a $2.2 million increase in deferred compensation expense attributable to the change in market value of our deferred compensation liability, a $1.9 million increase in share-based compensation expense, and a $1.1 million increase in performance bonus expense. 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. The $8.7 million increase in non-payroll costs was primarily driven by a $4.5 million increase in software and data hosting expenses, a $1.5 million increase in practice administration and meetings expenses, a $1.1 million increase in third-party professional fees, and a $1.0 million increase in facilities expenses. As a percentage of revenues before reimbursable expenses, selling, general and administrative expenses decreased to 19.2% during the first six months of 2026, compared to 19.7% during the first six months of 2025, which was primarily due to revenue growth that outpaced the increase in compensation costs for our support personnel.
Current report
Other Losses (Gains)
Current report
Other losses (gains) totaled a loss of $7.7 million in the first six months of 2026 compared to a gain of $0.1 million in the first six months of 2025. The $7.7 million of other losses in the first six months of 2026 consisted of remeasurement losses to increase the fair value of our contingent consideration liabilities related to business combinations. The $0.1 million of other gains in the first six months of 2025 consisted of a remeasurement gain to decrease the fair value of a contingent consideration liability related to a business combination.
Current report
Restructuring Charges
Current report
Depreciation and Amortization
Current report
Depreciation and amortization expense increased $5.8 million, or 41.3%, to $19.9 million for the first six months of 2026, compared to $14.1 million for the first six months of 2025. The $5.8 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.
Current report
Operating Income
Current report
Operating income increased $8.4 million, or 10.8%, to $86.8 million in the first six months of 2026 from $78.4 million in the first six months of 2025. Operating margin, which is defined as operating income expressed as a percentage of revenues before reimbursable expenses (RBR) was 9.5% for the first six months of 2026, compared to 9.8% for the first six months of 2025.
Current report
•Commercial operating income increased $10.8 million, or 45.6%, primarily due to the increase in RBR, as well as a decrease in contractor expenses; 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 due to an increase in headcount, driven by our acquisitions of Treliant and WP&C, and annual salary increases that went into effect in the first quarter of 2026, as well as increases in performance bonus expense and share-based compensation expense. Commercial operating margin increased to 18.7% from 15.9% primarily due to the decrease in contractor expenses.
Current report
Other Income (Expense), Net
Current report
Income Tax Expense
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Removed paragraphs (18)
Previous report
Revenues before Reimbursable Expenses (RBR)
Previous report
Reimbursable Expenses
Previous report
Operating Expenses
Previous report
•Revenues before reimbursable expenses (RBR) increased $48.0 million, or 12.1%, to $443.7 million for the first quarter of 2026 from $395.7 million for the first quarter of 2025.
Previous report
•Net income as a percentage of total revenues was 5.1% for the first quarter of 2026, compared to 6.1% for the first quarter of 2025.
Previous report
•Diluted EPS increased to $1.34 for the first quarter of 2026 from $1.33 for the first quarter of 2025.
Previous report
RBR increased $48.0 million, or 12.1%, to $443.7 million for the first quarter of 2026 from $395.7 million for the first quarter of 2025. The overall increase in RBR reflects continued strength in demand for our Consulting and Managed Services capabilities within our Healthcare and Commercial segments. The increase includes $19.3 million of incremental RBR from our acquisitions completed since December 31, 2024. Excluding the $19.3 million of incremental RBR from our acquisitions, RBR grew 7.3% organically.
Previous report
Net income decreased $1.3 million, or 5.3%, to $23.2 million, or 5.1% of total revenues, for the first quarter of 2026 compared to $24.5 million, or 6.1% of total revenues, for the same period last year. Net income for the first quarter of 2026 includes $3.8 million of income tax expense, compared to an income tax benefit of $3.1 million recorded for the first quarter of 2025. As a result of a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan, partially offset by the decrease in net income, diluted earnings per share for the first quarter of 2026 increased to $1.34 from $1.33 for the first quarter of 2025. The income tax expense in the first quarter of 2026 had an unfavorable $0.22 impact on diluted earnings per share, while the income tax benefit in the first quarter of 2025 had a favorable $0.17 impact on diluted earnings per share. Adjusted diluted earnings per share increased 3.0% to $1.73 for the first quarter of 2026, compared to $1.68 for the first quarter of 2025.
Previous report
Adjusted EBITDA increased $9.1 million, or 21.9%, to $50.6 million, or 11.4% of RBR, for the first quarter of 2026, compared to $41.5 million, or 10.5% of RBR, for the same period last year.
Previous report
The number of Managed Services professionals within our Healthcare segment was 2,537 and 1,568 as of March 31, 2026 and 2025, respectively.
Previous report
The number of Managed Services professionals within our Education segment was 106 and 89 as of March 31, 2026 and 2025, respectively.
Previous report
Revenues before Reimbursable Expenses (RBR)
Previous report
The number of revenue-generating professionals, excluding Managed Services professionals, within our Healthcare segment grew 24.4% to 1,700 as of March 31, 2026, compared to 1,367 as of March 31, 2025. Our acquisitions of Eclipse Insights and AXIOM in 2025 added approximately 75 revenue-generating professionals.
Previous report
Operating Expenses
Previous report
Reimbursable Expenses
Previous report
Other Losses
Previous report
Other losses totaled $3.8 million in the first quarter of 2026 and consisted of 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 decreased $1.3 million, or 5.3%, to $23.2 million for the three months ended March 31, 2026 from $24.5 million for the same period last year. Net income for the first quarter of 2026 includes $3.8 million of income tax expense, compared to an income tax benefit of $3.1 million recorded for the first quarter of 2025. As a result of a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan, partially offset by the decrease in net income, diluted earnings per share for the first quarter of 2026 increased to $1.34 from $1.33 for the first quarter of 2025. The income tax expense in the first quarter of 2026 had an unfavorable $0.22 impact on diluted earnings per share, while the income tax benefit in the first quarter of 2025 had a favorable $0.17 impact on diluted earnings per share.
Reworded paragraphs (56)
Previous wording
•Accelerating Growth in Healthcare and Education: Huron holds leading market positions in healthcare and education, providing comprehensive offerings to the largest health systems, academic medical centers, colleges and universities, and research institutes in the United States and abroad. The Company will continue to broaden its portfolio of offerings in healthcare and education to drive even greater impact on current and new clients as the needs in those industries further evolve due to competitive, regulatory, financial, and broader market changes.
Current wording
•Accelerating Growth in Healthcare and Education: Huron holds leading market positions in healthcare and education, providing comprehensive offerings to the largest health systems, academic medical centers, colleges and universities, and research institutes in the United States and abroad. The Company will continue to broaden its portfolio of offerings in healthcare and education to drive even greater impact on current and new clients as the needs in those industries further evolve due to competitive, technological, regulatory, financial, and broader market changes.
Previous wording
•Growing Presence in Commercial Industries: Through its deep industry and capability expertise and nimble approach, Huron has grown its client base and expanded its credentials in the commercial industries. Huron’s commercial industry focus has increased the diversification of the Company’s portfolio and end markets while expanding the range of capabilities it can deliver to clients, providing new avenues for growth and an important balance to its healthcare and education focus.
Current wording
•Growing Presence in Commercial Industries: Through its deep industry and capability expertise and nimble approach, Huron has grown its client base and expanded its credentials in the commercial industries. Huron’s commercial industry strategy has increased the diversification of the Company’s portfolio and end markets while expanding the range of capabilities it can deliver to clients, providing new avenues for growth and an important balance to its healthcare and education focus.
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 consulting and managed services offerings include financial and operational performance improvement consulting, which spans revenue cycle, business operations and care delivery transformation; organizational transformation; revenue cycle managed services and outsourcing; financial and capital advisory consulting; and strategy consulting. Our healthcare-focused digital services span technology and analytic-related services, including core systems of record, such as enterprise health record (“EHR”), enterprise resource planning (“ERP”), enterprise performance management (“EPM”), and customer relationship management (“CRM”) systems; data management, artificial intelligence (“AI”) and automation; technology managed services; and payor core administration systems. We also have a portfolio of software products we deliver to the healthcare industry. In June 2025, we enhanced our consulting offerings through the acquisition of Eclipse Insights, a leading provider of revenue cycle solutions. In November 2025, we acquired the consulting services division of AXIOM to strengthen our digital-focused payor offerings.
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 consulting and managed services offerings include financial and operational performance improvement consulting, which spans revenue cycle, business operations and care delivery transformation; organizational transformation; revenue cycle, clinical and patient access managed services and outsourcing; financial and capital advisory consulting; and strategy consulting. Our healthcare-focused digital services span technology and analytic-related services, including core systems of record, such as enterprise health record (“EHR”), enterprise resource planning (“ERP”), enterprise performance management (“EPM”), and customer relationship management (“CRM”) systems; data management, artificial intelligence (“AI”) and automation; technology managed services; and payor core administration systems. We also have a portfolio of software products we deliver to the healthcare industry. In June 2025, we enhanced our consulting offerings through the acquisition of Eclipse Insights, a leading provider of revenue cycle solutions. In November 2025, we acquired the consulting services division of AXIOM to strengthen our digital-focused payor offerings. In June 2026, we strengthened our managed services offerings through the acquisition of RelateCare, a leading provider of AI-enabled clinical and patient access 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 seven primary buyers: the chief executive officer, the chief financial officer, the chief strategy officer, the chief human resources officer, the chief operating officer, the chief risk officer, and organizational advisors, including lenders and law firms. We have a deep focus on serving organizations in the financial services, industrials and manufacturing, and energy and utilities 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 and capital advisory (special situation advisory and corporate finance advisory) consulting services, regulatory compliance and risk management consulting and managed services, strategy and operations consulting services, and financial and operational performance improvement consulting services. In the third quarter of 2025, we bolstered our Commercial consulting offerings through the acquisitions of Treliant, a global financial services consulting and managed services firm, and WP&C, a leading strategy and operations consulting firm specializing in driving operational efficiency and improved growth and profitability.
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 seven primary buyers: the chief executive officer, the chief financial officer, the chief strategy officer, the chief human resources officer, the chief operating officer, the chief risk officer, and organizational advisors, including lenders and law firms. We have a deep focus on serving organizations in the financial services, industrials and manufacturing, and energy and utilities 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, financial and capital advisory (special situation advisory and corporate finance advisory) consulting services, regulatory compliance and risk management consulting and managed services, strategy and operations consulting services, and financial and operational performance improvement consulting services. In the third quarter of 2025, we bolstered our Commercial consulting offerings through the acquisitions of Treliant, a global financial services consulting and managed services firm, and WP&C, a leading strategy and operations consulting firm specializing in driving operational efficiency and improved growth and profitability.
Previous wording
Our Consulting and Managed Services capabilities represent our management consulting services, managed services (excluding technology-related managed services) and outsourcing services delivered across industries. Our Consulting and Managed Services experts help our clients address a variety of strategic, operational, financial, people and organizational-related challenges. These services are often combined with technology, analytic, and data- and AI-driven solutions powered by our Digital capability to support long-term relationships with our clients and drive lasting impact. Examples include the areas of revenue cycle management and research administration managed services and outsourcing at our healthcare, education and research-focused clients, where our projects are often coupled with our digital services and product offerings and management consulting services to sustain improved performance.
Current wording
Our Consulting and Managed Services capabilities represent our management consulting services, managed services (excluding technology-related managed services) and outsourcing services delivered across industries. Our Consulting and Managed Services experts help our clients address a variety of strategic, operational, financial, people and organizational-related challenges. These services are often combined with technology, analytic, and data- and AI-driven solutions powered by our Digital capability to support long-term relationships with our clients and drive lasting impact. Examples include the areas of revenue cycle, clinical and patient access and research administration managed services and outsourcing at our healthcare, education and research-focused clients, where our projects are often coupled with our digital services and product offerings and management consulting services to sustain improved performance.
Previous wording
Unrealized losses (gains) on long-term investments, net: 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 statement 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.
Current wording
Unrealized losses (gains) on long-term investments, net: We exclude the effect of unrealized losses and gains related to our long-term investments, which include changes to the credit allowance recognized on our convertible debt investment in a third-party as well as 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 statement 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
Managed Services professionals who provide revenue cycle management and research administration managed services and outsourcing at our healthcare, education and research-focused clients.
Current wording
Managed Services professionals who provide revenue cycle, clinical and patient access managed services, research administration managed services and outsourcing at our healthcare, education and research-focused clients.
Previous wording
Highlights from the first quarter of 2026 include the following:
Current wording
Highlights from the second quarter of 2026 include the following:
Previous wording
•Adjusted EBITDA as a percentage of RBR increased to 11.4% for the first quarter of 2026, compared to 10.5% for the first quarter of 2025.
Current wording
•Adjusted EBITDA as a percentage of RBR increased to 15.6% for the second quarter of 2026, compared to 15.1% for the second quarter of 2025.
Previous wording
•Adjusted diluted EPS increased 3.0% to $1.73 for the first quarter of 2026, compared to $1.68 for the first quarter of 2025.
Current wording
•Adjusted diluted EPS increased 30.2% to $2.46 for the second quarter of 2026, compared to $1.89 for the second quarter of 2025.
Previous wording
•Returned $155.5 million to shareholders in the first three months of 2026 by repurchasing 1,114,806 shares of our common stock.
Current wording
•Returned $53.1 million to shareholders in the second quarter of 2026 by repurchasing 438,456 shares of our common stock.
Previous wording
RBR within our Consulting and Managed Services capability increased $47.7 million, or 21.3%, in the first quarter of 2026 to $271.6 million, compared to $223.9 million in the first quarter of 2025; and reflected strengthened demand in our Healthcare and Commercial segments. The increase includes $17.5 million of incremental RBR from our acquisitions of Treliant, Eclipse Insights, WP&C, Advancement Resources, and Halpin. The utilization rate within our Consulting capability increased to 74.6% in the first quarter of 2026, compared to 74.1% in the first quarter of 2025.
Current wording
RBR within our Consulting and Managed Services capability increased $46.8 million, or 20.4%, in the second quarter of 2026 to $275.9 million, compared to $229.1 million in the second quarter of 2025; and reflected strengthened demand in our Healthcare and Commercial segments. The increase includes $17.5 million of incremental RBR from our acquisitions of WP&C, RelateCare, Treliant, and Eclipse Insights. The utilization rate within our Consulting capability increased to 81.3% in the second quarter of 2026, compared to 77.0% in the second quarter of 2025.
Previous wording
RBR within our Digital capability increased $0.3 million, or 0.2%, in the first quarter of 2026 to $172.1 million, compared to $171.8 million in the first quarter of 2025; and reflected an increase in RBR in our Education segment, partially offset by a decrease in RBR in our Commercial and Healthcare segments. The increase includes $1.7 million of incremental RBR from our acquisition of AXIOM. The utilization rate within our Digital capability decreased to 74.8% in the first quarter of 2026, compared to 78.2% in the first quarter of 2025.
Current wording
RBR within our Digital capability increased $16.3 million, or 9.4%, in the second quarter of 2026 to $189.7 million, compared to $173.4 million in the second quarter of 2025; and reflected an increase in RBR in our Education and Healthcare segments. The increase includes $1.9 million of incremental RBR from our acquisition of AXIOM. The utilization rate within our Digital capability increased to 81.8% in the second quarter of 2026, compared to 77.8% in the second quarter of 2025.
Previous wording
Our total number of revenue-generating professionals, excluding Managed Services professionals, increased 12.6% to 5,346 as of March 31, 2026, compared to 4,748 as of March 31, 2025, as a result of the acquisitions completed since the first quarter of 2025 and hiring to support the overall increase in demand for our services. The number of Managed Services professionals increased 59.5% to 2,643 as of March 31, 2026 from 1,657 as of March 31, 2025, 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.
Current wording
Our total number of revenue-generating professionals, excluding Managed Services professionals, increased 7.0% to 5,335 as of June 30, 2026, compared to 4,986 as of June 30, 2025, as a result of the acquisitions completed since the second quarter of 2025 and hiring to support the overall increase in demand for our services. The number of Managed Services professionals increased to 3,913 as of June 30, 2026 from 1,895 as of June 30, 2025. This increase includes our acquisition of RelateCare in June 2026, which added approximately 1,100 Managed Services professionals. 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 2026, we deployed $155.5 million of capital to repurchase 1,114,806 shares of our common stock, representing 6.5% of our common stock outstanding as of December 31, 2025.
Current wording
In the second quarter of 2026, we deployed $53.1 million of capital to repurchase 438,456 shares of our common stock, representing 2.5% of our common stock outstanding as of December 31, 2025.
Previous wording
(5) We have separately presented the total number of revenue-generating professionals within our Managed Services capabilities of our Healthcare and Education segments. Our Healthcare Managed Services professionals provide revenue cycle billing, collections, insurance verification and change integrity services to clients. Our Education Managed Services professionals provide research administration managed services and outsourcing at our education and research-focused clients.
Current wording
(5) We have separately presented the total number of revenue-generating professionals within our Managed Services capabilities of our Healthcare and Education segments. Our Healthcare Managed Services professionals provide revenue cycle, clinical and patient access services from patient scheduling and clinical triage through billing and collections. Our Education Managed Services professionals provide research administration managed services and outsourcing at our education and research-focused clients.
Previous wording
(6) Managed Services capability RBR within our Healthcare segment was $26.1 million and $18.3 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(6) Managed Services capability RBR within our Healthcare segment was $34.4 million and $21.0 million for the three months ended June 30, 2026 and 2025, respectively; and $60.5 million and $39.3 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
Managed Services capability RBR within our Education segment was $5.8 million and $5.6 million for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Managed Services capability RBR within our Education segment was $6.9 million and $6.0 million for the three months ended June 30, 2026 and 2025, respectively; and $12.8 million and $11.5 million for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
RBR increased $48.0 million, or 12.1%, to $443.7 million for the first quarter of 2026 from $395.7 million for the first quarter of 2025. The overall increase in RBR reflects continued strength in demand for our Consulting and Managed Services capabilities within our Healthcare and Commercial segments. The increase includes $19.3 million of incremental RBR from our acquisitions completed since December 31, 2024. Excluding the $19.3 million of incremental RBR from our acquisitions, RBR grew 7.3% organically. Additional information on our RBR by segment follows.
Current wording
RBR increased $63.1 million, or 15.7%, to $465.6 million for the second quarter of 2026 from $402.5 million for the second quarter of 2025. This growth reflects strength in demand across all three of our operating segments and across both the Consulting and Managed Services and Digital capabilities. The increase includes $19.5 million of incremental RBR from our acquisitions completed since March 31, 2025. Excluding the $19.5 million of incremental RBR from our acquisitions, RBR grew 10.8% organically. Additional information on our RBR by segment follows.
Previous wording
The number of revenue-generating professionals within our Education segment, excluding Managed Services professionals, decreased 6.1% to 1,117 as of March 31, 2026, compared to 1,189 as of March 31, 2025.
Current wording
The number of revenue-generating professionals within our Education segment, excluding Managed Services professionals, decreased 10.2% to 1,070 as of June 30, 2026, compared to 1,192 as of June 30, 2025.
Previous wording
•Commercial RBR increased $16.6 million, or 22.3%, which reflects $11.0 million of incremental RBR from our acquisitions of Treliant and WP&C and strengthened demand for our financial advisory solution within our Consulting and Managed Services capability; partially offset by a decrease in RBR for our technology and analytics services within our Digital capability.
Current wording
•Commercial RBR increased $18.6 million, or 24.6%, which reflects $9.2 million of incremental RBR from our acquisitions of Treliant and WP&C and strengthened demand for our financial advisory solution within our Consulting and Managed Services capability; partially offset by a decrease in RBR from our technology and analytics services within our Digital 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 15.4% to 2,529 as of March 31, 2026, compared to 2,192 as of March 31, 2025. Our acquisitions of Treliant and WP&C in 2025 added approximately 210 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 9.3% to 2,527 as of June 30, 2026, compared to 2,311 as of June 30, 2025. Our acquisitions of Treliant and WP&C in 2025 added approximately 210 revenue-generating professionals.
Previous wording
Operating expenses for the first quarter of 2026 increased $43.8 million, or 11.8%, over the first quarter of 2025.
Current wording
Operating expenses for the second quarter of 2026 increased $58.7 million, or 16.0%, over the second quarter of 2025.
Previous wording
Selling, general and administrative expenses increased by $8.1 million, or 10.5%, to $84.7 million in the first quarter of 2026 from $76.6 million in the first quarter of 2025. The $8.1 million increase primarily related to a $6.3 million increase in non-payroll costs and a $1.7 million increase in compensation costs for our support personnel. The $6.3 million increase in non-payroll costs was primarily driven by a $2.3 million increase in software and data hosting expenses and a $2.2 million increase in practice administration and meetings expenses. The $1.7 million increase in compensation costs for our support personnel was primarily driven by a $1.2 million increase in salaries and related expenses and a $1.0 million increase in share-based compensation expense. As a percentage of RBR, selling, general and administrative expenses decreased to 19.1% during the first quarter of 2026, compared to 19.4% during the first quarter of 2025, which was primarily due to revenue growth that outpaced the increase in compensation costs for our support personnel; partially offset by increases in practice administration meeting expenses and software and data hosting expenses, as percentages of RBR.
Current wording
Selling, general and administrative expenses increased by $9.6 million, or 11.9%, to $89.8 million in the second quarter of 2026 from $80.2 million in the second quarter of 2025. The $9.6 million increase related to a $7.1 million increase in compensation costs for our support personnel and a $2.4 million increase in non-payroll costs. The $7.1 million increase in compensation costs for our support personnel was primarily driven by a $2.4 million increase in deferred compensation expense attributable to the change in market value of our deferred compensation liability, a $2.4 million increase in salaries and related expenses, a $1.4 million increase in performance bonus expense, and a $0.9 million increase in share-based compensation. 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. The $2.4 million increase in non-payroll costs was primarily driven by a $2.1 million increase in software and data hosting expenses. As a percentage of RBR, selling, general and administrative expenses decreased to 19.3% during the second quarter of 2026, compared to 19.9% during the second quarter of 2025, which was primarily due to revenue growth that outpaced the increase in salaries and related expenses for our support personnel.
Previous wording
Depreciation and amortization expense increased $2.8 million, or 39.9%, to $9.7 million in the first quarter of 2026, compared to $6.9 million in the first quarter of 2025. The $2.8 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.
Current wording
Depreciation and amortization expense increased $3.0 million, or 42.6%, to $10.1 million in the second quarter of 2026, compared to $7.1 million in the second quarter of 2025. The $3.0 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 $3.9 million, or 11.8%, to $36.6 million in the first quarter of 2026 from $32.7 million in the first quarter of 2025. Operating margin, which is defined as operating income expressed as a percentage of revenues before reimbursable expenses (RBR) was 8.2% for the three months ended March 31, 2026, compared to 8.3% for the three months ended March 31, 2025.
Current wording
Operating income increased $4.6 million, or 10.1%, to $50.2 million in the second quarter of 2026 from $45.7 million in the second quarter of 2025. Operating margin, which is defined as operating income expressed as a percentage of revenues before reimbursable expenses (RBR) was 10.8% for the three months ended June 30, 2026, compared to 11.3% for the three months ended June 30, 2025.
Previous wording
•Commercial operating income increased $3.6 million, or 31.9%, primarily due to the increase in RBR; 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 due to an increase in headcount, driven by our acquisitions of Treliant and WP&C, annual salary increases that went into effect in the first quarter of 2026, and an increase in performance bonus expense. Commercial operating margin increased to 16.4% from 15.2% primarily due to decreases in contractor expenses and salaries and related expenses for our support personnel, as well as revenue growth that outpaced the increase in performance bonus expense for our revenue-generating professionals; partially offset by an increase in salaries and related expenses for our revenue-generating professionals, as a percentage of RBR.
Current wording
•Commercial operating income increased $7.2 million, or 57.9%, primarily due to the increase in RBR, as well a decrease in contractor expenses; 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 due to an increase in headcount, driven by our acquisitions of Treliant and WP&C, annual salary increases that went into effect in the first quarter of 2026, and increases in performance bonus expense and share-based compensation expense. Commercial operating margin increased to 21.0% from 16.6% primarily driven by decreases in contractor expenses and salaries and related expenses for our support personnel, as well as revenue growth that outpaced the increase in salaries and related expenses for our revenue-generating professionals; partially offset by increases in performance bonus expense and share-based compensation expense for our revenue-generating professionals, as percentages of RBR.
Previous wording
Interest expense, net of interest income increased $3.2 million to $8.9 million in the first quarter of 2026 from $5.6 million in the first quarter of 2025, which was primarily attributable to higher levels of borrowing under our senior secured credit facility during the first quarter of 2026 compared to the first quarter of 2025. 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 wording
Interest expense, net of interest income increased $2.7 million to $11.9 million in the second quarter of 2026 from $9.3 million in the second quarter of 2025, which was primarily attributable to higher levels of borrowing under our senior secured credit facility during the second quarter of 2026 compared to the second quarter of 2025. 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.
Previous wording
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 and Note 11 “Fair Value of Financial Instruments” within the notes to our consolidated financial statements for additional information on our equity investment.
Current wording
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 and 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.
Previous wording
EBITDA increased $11.7 million, or 34.1%, to $45.9 million for the first quarter of 2026 from $34.2 million for the first quarter of 2025. The increase in EBITDA was primarily attributable to the increase in segment operating income for all three of our segments, excluding segment depreciation and amortization and the absence of the prior year $4.2 million non-cash impairment loss related to our equity investment in a hospital-at-home company recognized in the first quarter of 2025; 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 the $3.8 million of remeasurement losses to increase the fair value of our contingent consideration liabilities related to business combinations recognized in the first quarter of 2026.
Current wording
EBITDA increased $20.9 million, or 47.3%, to $65.3 million for the second quarter of 2026 from $44.3 million for the second quarter of 2025. The increase in EBITDA was primarily attributable to the increase in segment operating income for all three of our segments, excluding segment depreciation and amortization, and the absence of the prior year $11.1 million non-cash credit-related impairment charge recognized in the second quarter of 2025 related to our convertible debt investment in a third-party; 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 the $3.9 million of remeasurement losses to increase the fair value of our contingent consideration liabilities related to business combinations recognized in the first quarter of 2026.
Previous wording
Adjusted EBITDA increased $9.1 million, or 21.9%, to $50.6 million in the first quarter of 2026 from $41.5 million in the first quarter of 2025. The increase in adjusted EBITDA was primarily attributable to the increase in segment operating income for all three of our 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.
Current wording
Adjusted EBITDA increased $12.1 million, or 19.9%, to $72.6 million in the second quarter of 2026 from $60.6 million in the second quarter of 2025. The increase in adjusted EBITDA was primarily attributable to the increase in segment operating income for all three of our 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 decreased $1.1 million, or 3.4%, to $30.0 million in the first quarter of 2026, compared to $31.1 million in the first quarter of 2025. As a result of a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan, partially offset by the decrease in adjusted net income, adjusted diluted earnings per share increased to $1.73 for the first quarter of 2026 compared to $1.68 for the first quarter of 2025.
Current wording
Adjusted net income increased $6.6 million, or 19.5%, to $40.2 million in the second quarter of 2026, compared to $33.7 million in the second quarter of 2025. 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, the adjusted diluted earnings per share increased to $2.46 for the second quarter of 2026 compared to $1.89 for the second quarter of 2025.
Previous wording
•Healthcare RBR increased $26.7 million, or 13.5%, driven by strengthened demand for our performance improvement, revenue cycle managed services, financial advisory, and strategy solutions within our Consulting and Managed Services capability; partially offset by decreases in RBR for our technology and analytics services and software products within our Digital capability. RBR in the first quarter of 2026 included $7.3 million of incremental RBR from our acquisitions of Eclipse Insights and AXIOM.
Current wording
•Healthcare RBR increased $61.2 million, or 15.4%, driven by strengthened demand for our performance improvement, Healthcare managed services, financial advisory, and strategy solutions within our Consulting and Managed Services capability and technology and analytics services within our Digital capability; partially offset by a decrease in RBR from our software products within our Digital capability. RBR in the first six months of 2026 included $17.4 million of incremental RBR from our acquisitions of Eclipse Insights, RelateCare, and AXIOM.
Previous wording
•Education RBR increased $4.7 million, or 3.8%, driven by strengthened demand for our technology and analytics services and software products within our Digital capability; partially offset by a decrease in RBR for our education and research consulting solution within our Consulting and Managed Services. RBR in the first quarter of 2026 included $1.0 million of incremental RBR from our acquisitions of Advancement Resources and Halpin.
Current wording
•Education RBR increased $14.8 million, or 5.9%, driven by strengthened demand for our technology and analytics services and software products within our Digital capability; partially offset by a decrease in RBR from our education and research consulting solution within our Consulting and Managed Services capability. RBR in the first six months of 2026 included $1.0 million of incremental RBR from our acquisitions of Advancement Resources and Halpin.
Previous wording
Direct costs increased $30.2 million, or 10.8%, to $308.2 million for the first quarter of 2026 from $278.0 million for the first quarter of 2025. The $30.2 million increase primarily related to a $30.0 million increase in compensation costs for our revenue-generating professionals and a $1.5 million increase in technology costs; partially offset by a $1.5 million decrease 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 $29.6 million increase in salaries and related expenses, driven by recent acquisitions, hiring to support the overall increase in demand for our services and annual salary increases that went into effect in the first quarter of 2026, and a $1.3 million increase in performance bonus expense; partially offset by a $1.4 million decrease in share-based compensation expense. As a percentage of RBR, direct costs decreased to 69.5% during the first quarter of 2026, compared to 70.3% during the first quarter of 2025. This decrease was primarily due to revenue growth that outpaced the increase in performance bonus expense for our revenue-generating professionals and the decreases in share-based compensation expense and contractor expenses; partially offset by an increase in salaries and related expenses for our revenue-generating professionals, as a percentage of RBR.
Current wording
Direct costs increased $72.3 million, or 13.2%, to $619.4 million for the first six months of 2026 from $547.1 million for the first six months of 2025. The $72.3 million increase primarily related to a $71.5 million increase in compensation costs for our revenue-generating professionals and a $2.2 million increase in technology costs; partially offset by a $1.9 million decrease 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 $60.5 million increase in salaries and related expenses, driven by recent acquisitions, hiring to support the overall increase in demand for our services and annual salary increases that went into effect in the first quarter of 2026, and a $10.7 million increase in performance bonus expense. As a percentage of revenues before reimbursable expenses, direct costs decreased to 68.1% during the first six months of 2026, compared to 68.5% during the first six months of 2025, primarily driven by the decrease in contractor expenses.
Previous wording
Restructuring charges for the first quarter of 2026 were $0.7 million, compared to $1.3 million for the first quarter of 2025. The $0.7 million of restructuring charges recognized in the first quarter of 2026 included $3.4 million of severance-related expenses and $1.0 million of rent and related expenses, net of sublease income, for our previously vacated office spaces, largely offset by a $3.8 million non-cash gain on lease modification. In the first quarter of 2026, we entered into the Seventh Amendment to the office lease agreement for our principal executive offices in Chicago, Illinois, which, among other items, provides for the early termination of the lease with respect to certain leased spaces previously vacated. See Note 14 “Commitments, Contingencies and Guarantees” within the notes to our consolidated financial statement for additional information on the Seventh Amendment.
Current wording
Restructuring charges for the first six months of 2026 were $1.1 million, compared to $1.9 million for the first six months of 2025. The $1.1 million of restructuring charges recognized in the first six months of 2026 included $3.2 million of severance-related expenses and $1.7 million of rent and related expenses, net of sublease income, for our previously vacated office spaces, largely offset by $4.0 million of non-cash gains on lease modifications. In the first quarter of 2026, we entered into the Seventh Amendment to the office lease agreement for our principal executive offices in Chicago, Illinois, which, among other items, provides for the early termination of the lease with respect to certain leased spaces previously vacated. As a result of this modification, we recognized a $3.8 million non-cash gain on lease modification. In the second quarter of 2026, we recorded a $0.2 million non-cash gain on lease modification on our office space in Hillsboro, Oregon. See Note 14 “Commitments, Contingencies and Guarantees” within the notes to our consolidated financial statements for additional information on the Seventh Amendment to the Chicago, Illinois office lease.
Previous wording
The $1.3 million of restructuring charges 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
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
•Healthcare operating income increased $7.6 million, or 13.6%, primarily due to the increase in RBR, as well as a decrease in salaries and related expenses for our support personnel; partially offset by increases in compensation costs for our revenue-generating professionals and practice administration meetings expenses. The increase in compensation costs for our revenue-generating professionals was driven by an increase in headcount and annual salary increases that went into effect in the first quarter of 2026. Healthcare operating margin was 28.4% for both the first quarter of 2026 and 2025.
Current wording
•Healthcare operating income increased $17.9 million, or 15.4%, primarily due to the increase in RBR, as well as a decrease in salaries and related expenses for our support personnel; partially offset by increases in compensation costs for our revenue-generating professionals and practice administration and meetings expenses. The increase in compensation costs for our revenue-generating professionals was primarily due to an increase in headcount, partially driven by our acquisition of RelateCare, and annual salary increases that went into effect in the first quarter of 2026, as well as an increase in performance bonus expense. Healthcare operating margin was 29.3% for both the first six months of 2026 and 2025.
Previous wording
•Education operating income increased $4.5 million, or 19.6%, primarily due to the increase in RBR, as well as decreases in practice administration and meeting expenses and compensation costs for our revenue-generating professionals; partially offset by an increase in technology costs. The decrease in compensation costs for our revenue-generating professionals was primarily driven by decreases in share-based compensation expense and performance bonus expense; largely offset by annual salary increases that went into effect in the first quarter of 2026. Education operating margin increased to 21.6% from 18.8% primarily driven by the decreases in compensation costs for our revenue-generating professionals and practice administration and meetings expenses.
Current wording
•Education operating income increased $9.6 million, or 17.3%, primarily due to the increase in RBR, as well as decreases in practice administration and meeting expenses and salaries and related expenses for our support personnel; partially offset by increases in compensation costs for our revenue-generating professionals, technology costs, and amortization of internally developed software. The increase in compensation costs for our revenue-generating professionals was primarily driven by annual salary increases that went into effect in the first quarter of 2026, as well as an increase in performance bonus expense. Education operating margin increased to 24.4% from 22.0% primarily due to revenue growth that outpaced the increase in compensation costs for our revenue-generating professionals and the decrease in practice administration and meeting expenses.
Previous wording
•Unallocated corporate expenses increased $7.7 million, or 14.6%, primarily due to increases in compensation costs for our support personnel and software and data hosting expenses. The increases in compensation costs for our support personnel was primarily driven by an increase in headcount, annual salary increases that went into effect in the first quarter of 2026, and an increase in share-based compensation expense.
Current wording
•Unallocated corporate expenses increased $18.7 million, or 17.6%, primarily due to increases in compensation costs for our support personnel and software and data hosting expenses. The increases in compensation costs for our support personnel was primarily driven by an increase in headcount, annual salary increases that went into effect in the first quarter of 2026 and an increase in deferred compensation expense attributable to the change in the market value of our deferred compensation liability, as well as increases in share-based compensation expense and performance bonus expense.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
•Unallocated corporate expenses increased $11.1 million, or 20.4%, primarily due to increases in compensation costs for our support personnel and software and data hosting expenses. The increase in compensation costs for our support personnel was primarily driven by an increase in headcount, annual salary increases that went into effect in the first quarter of 2026 and an increase in deferred compensation expense attributable to the change in the market value of our deferred compensation liability, and an increase in performance bonus expense.
Current report — wording carried from elsewhere
Revenues before reimbursable expenses (RBR) by segment and capability for the six months ended June 30, 2026 and 2025 were as follows:
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 9.3% to 2,527 as of June 30, 2026, compared to 2,311 as of June 30, 2025. Our acquisitions of Treliant and WP&C in 2025 added approximately 210 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 (RBR), 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 $5.9 million to $20.8 million in the first six months of 2026 from $14.9 million in the first six months of 2025, which was primarily attributable to higher levels of borrowing under our senior secured credit facility during the first six months of 2026 compared to the first six months of 2025. 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
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 and 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.
Current report — wording carried from elsewhere
Net Income and Earnings per Share
Current report — wording carried from elsewhere
Adjusted Net Income and Adjusted Earnings per Share