Huron Consulting Group Inc.
For the period ended Sep 30, 2026. Filed Nov 3, 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.
Sep 30, 2026 · Filed Nov 3, 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 2026-06-30; filed 2026-07-28.
0001628280-26-050176
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-03.
0001628280-26-069514
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 221 previous paragraphs and 222 current paragraphs.
125 unchanged; 80 reworded; 15 added; 14 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 12 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 (15)
Current report
•Revenues before reimbursable expenses (RBR) increased $50.2 million, or 11.6%, to $482.5 million for the third quarter of 2026 from $432.4 million for the third quarter of 2025.
Current report
•Adjusted diluted earnings per share increased 24.8% to $2.62 for the third quarter of 2026, compared to $2.10 for the third quarter of 2025.
Current report
RBR increased $50.2 million, or 11.6%, to $482.5 million for the third quarter of 2026 from $432.4 million for the third 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 $21.1 million of incremental RBR from our acquisitions completed since June 30, 2025. Excluding the $21.1 million of incremental RBR from our acquisitions, RBR grew 6.7% organically.
Current report
Net income decreased $2.0 million, or 6.6%, to $28.4 million for the three months ended September 30, 2026 from $30.4 million for the same period last year. The third quarter of 2026 includes the $5.9 million non-cash credit-related loss on our convertible debt investment in a third-party. Diluted earnings per share for the third quarter of 2026 increased 2.3% to $1.75 from $1.71 for the third quarter of 2025 driven by a reduction in diluted shares outstanding as a result of share repurchases made under our share repurchase plan; partially offset by the decrease in net income. The non-cash credit-related loss recognized in the third quarter of 2026 had an unfavorable $0.36 impact on diluted earnings per share for the period. Adjusted diluted earnings per share increased 24.8% to $2.62 for the third quarter of 2026, compared to $2.10 for the third quarter of 2025.
Current report
The number of Managed Services professionals within our Education segment was 125 and 93 as of September 30, 2026 and 2025, respectively.
Current report
•Commercial RBR increased $5.4 million, or 6.4%, which reflects $4.3 million of incremental RBR primarily from our acquisition of WP&C and strengthened demand for our strategy solution within our Consulting and Managed Services capability.
Current report
Other Losses
Current report
Other losses totaled $4.9 million in the third 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 third quarter of 2025.
Current report
The $3.5 million of restructuring charges recognized in the third quarter of 2025 included $1.6 million of severance-related expenses; $1.1 million of accelerated depreciation and amortization on the related fixed assets and right-of-use operating lease assets recognized when we exited our office space in Pensacola, Florida in the third quarter of 2025; and $0.8 million of rent and related expenses, net of sublease income, for our previously vacated office spaces.
Current report
For the three months ended September 30, 2025, our effective tax rate was 28.7% as we recognized income tax expense of $12.2 million on income of $42.6 million. The effective tax rate of 28.7% was less favorable than the statutory rate, inclusive of state income taxes, of 26.0%, primarily due to certain nondeductible expense items.
Current report
Net income decreased $2.0 million, or 6.6%, to $28.4 million for the three months ended September 30, 2026 from $30.4 million for the same period last year. The third quarter of 2026 includes a $5.9 million non-cash loss resulting from the increase to the credit allowance recognized on our convertible debt investment in a third-party. Diluted earnings per share for the third quarter of 2026 increased to $1.75 from $1.71 for the third quarter of 2025 driven by a reduction in diluted shares outstanding resulting from share repurchases made under our share repurchase plan; partially offset by the decrease in net income. The non-cash credit-related loss had an unfavorable $0.36 impact on diluted earnings per share during third quarter of 2026.
Current report
EBITDA increased $3.0 million, or 4.7%, to $65.6 million for the third quarter of 2026 from $62.6 million for the third quarter of 2025. The increase in EBITDA was primarily attributable to the increases in Healthcare and Education segment operating income, excluding segment depreciation and amortization, and the decrease in restructuring charges. These increases to EBITDA were partially offset by the increase to the credit allowance recognized on our convertible debt investment in a third-party; the increase of remeasurement losses to increase the fair value of our contingent consideration liabilities; 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.
Current report
Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
Current report
Net income increased $8.5 million, or 11.4%, to $82.9 million for the nine months ended September 30, 2026 from $74.4 million for the same period last year. Net income for the nine months ended September 30, 2026 includes a net non-cash credit-related loss of $4.9 million resulting from the increase in the credit allowance recognized on our convertible debt investment in a third-party. Net income for the nine months ended September 30, 2025 includes the non-cash credit-related loss, net of tax, of $8.2 million resulting from the establishment of the credit allowance on our convertible debt investment in a third-party. Diluted earnings per share for the nine months ended September 30, 2026 increased to $4.96 compared to $4.13 for the nine months ended September 30, 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 losses recognized in the first nine months of 2026 and 2025 had an unfavorable impact on diluted earnings per share of $0.29 and $0.46, respectively.
Current report
EBITDA increased $35.6 million, or 25.2%, to $176.7 million for the nine months ended September 30, 2026 from $141.2 million for the nine months ended September 30, 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 decreases in the non-cash credit losses recognized on our convertible debt investment in a third-party, restructuring charges, and the non-cash impairment charges recognized on our equity investment in a hospital-at-home company. These increases to EBITDA were partially offset by the increases in unallocated corporate expenses, excluding the impact of the change in the market value of our deferred compensation liability, and the remeasurement losses to increase the fair value of our contingent consideration liabilities recognized in the first nine months of 2026.
Removed paragraphs (14)
Previous 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.
Previous report
•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 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.
Previous 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.
Previous report
(2) The increase in the number of revenue-generating professionals within our Commercial segment includes our acquisition of Treliant in the third quarter of 2025. This acquisition added approximately 180 revenue-generating professionals, of which approximately 65 are consultants who work variable schedules as needed by clients.
Previous report
The number of Managed Services professionals within our Education segment was 119 and 88 as of June 30, 2026 and 2025, respectively.
Previous report
•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 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.
Previous 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.
Previous report
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 report
Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025
Previous report
Other Losses (Gains)
Previous report
Net income increased $10.5 million, or 23.9%, to $54.5 million for the six months ended June 30, 2026 from $44.0 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 six months ended June 30, 2026 increased to $3.22 compared to $2.42 for the six months ended June 30, 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 had an unfavorable $0.45 impact on diluted EPS during the first six months of 2025.
Previous report
EBITDA increased $32.6 million, or 41.5%, to $111.2 million for the six months ended June 30, 2026 from $78.6 million for the six months ended June 30, 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 absences of the prior year $11.1 million non-cash credit-related impairment charge related to our convertible debt investment in a third-party and the prior year $5.0 million of non-cash impairment charges recognized on our equity investment in a hospital-at-home company; 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 $7.7 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.
Reworded paragraphs (80)
Previous wording
Statements in this Quarterly Report on Form 10-Q that are not historical in nature, including those concerning the Company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans,” “positions,” “continues,” “goals,” “guidance,” or “outlook,” or similar expressions. These forward-looking statements reflect our current expectations about our future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: failure to achieve expected utilization rates, billing rates, and the necessary number of revenue-generating professionals; our ability to realize the expected benefits and potential opportunities of artificial intelligence (AI); inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; risks relating to privacy, information security, and related laws and standards; and a general downturn or volatility in market conditions, including as a result of current global trade tensions and/or tariffs. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under Item 1A. “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025 that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. We disclaim any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.
Current wording
Statements in this Quarterly Report on Form 10-Q that are not historical in nature, including those concerning the Company’s current expectations about its future results, are “forward-looking” statements as defined in Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “confidence,” “estimates,” “plans,” “positions,” “continues,” “goals,” “guidance,” or “outlook,” or similar expressions. These forward-looking statements reflect our current expectations about our future requirements and needs, results, levels of activity, performance, or achievements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: failure to achieve expected utilization rates, billing rates, and the necessary number of revenue-generating professionals; our ability to realize the expected benefits and potential opportunities of artificial intelligence (AI); inability to expand or adjust our service offerings in response to market demands; our dependence on renewal of client-based services; dependence on new business and retention of current clients and qualified personnel; failure to maintain third-party provider relationships and strategic alliances; inability to license technology to and from third parties; the impairment of goodwill; various factors related to income and other taxes; difficulties in successfully integrating the businesses we acquire and achieving expected benefits from such acquisitions; risks relating to privacy, information security, and related laws and standards; and a general downturn or volatility in market conditions, including as a result of current global trade tensions and/or tariffs. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, including, among others, those described under Item 1A. “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025 that may cause actual results, levels of activity, performance or achievements to be materially different from any anticipated results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. We disclaim any obligation to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.
Previous wording
Segment operating income consists of the revenues generated by a segment, less operating expenses that are incurred directly by the segment. Unallocated corporate expenses not allocated at the segment level include costs related to administrative functions that are performed in a centralized manner, as well as restructuring charges, depreciation and amortization, and interest expense that are not attributable to a particular segment. The administrative function costs include corporate office support costs, office facility costs, costs related to accounting and finance, human resources, legal, marketing, information technology, and company-wide business development functions, and costs related to overall corporate management.
Current wording
Segment operating income consists of the revenues generated by a segment, less operating expenses that are incurred directly by the segment. Unallocated corporate expenses not allocated at the segment level include costs related to administrative functions that are performed in a centralized manner, as well as other gains and losses, restructuring charges, depreciation and amortization, and interest expense that are not attributable to a particular segment. The administrative function costs include corporate office support costs, office facility costs, costs related to accounting and finance, human resources, legal, marketing, information technology, and company-wide business development functions, and costs related to overall corporate management.
Previous wording
Our revenue-generating professionals consist of our full-time consultants who generate revenues based on the number of hours worked; full-time equivalents, which consists of coaches and their support staff within the culture and organizational excellence solution, consultants who work variable schedules as needed by clients, and full-time employees who provide software support and maintenance services to clients; and our
Current wording
Our revenue-generating professionals consist of our full-time consultants who generate revenues based on the number of hours worked; full-time equivalents, which consists of coaches and their support staff within the culture and organizational excellence solution, consultants who work variable schedules as needed by clients, and full-time employees who provide software support and maintenance services to clients; and our 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 second quarter of 2026 include the following:
Current wording
Highlights from the third quarter of 2026 include the following:
Previous wording
•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 wording
•Net income as a percentage of total revenues was 5.8% for the third quarter of 2026, compared to 6.9% for the third quarter of 2025. Results for the third quarter of 2026 include a $5.9 million non-cash credit-related loss on our convertible debt investment in a third-party.
Previous 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.
Current wording
•Adjusted EBITDA as a percentage of RBR increased to 16.0% for the third quarter of 2026, compared to 15.6% for the third quarter of 2025.
Previous wording
•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 wording
•Diluted earnings per share increased 2.3% to $1.75 for the third quarter of 2026 from $1.71 for the third quarter of 2025. Results for the third quarter of 2026 include the non-cash credit-related loss on our convertible debt investment, which had an unfavorable $0.36 impact on diluted earnings per share for the period.
Previous wording
•Returned $53.1 million to shareholders in the second quarter of 2026 by repurchasing 438,456 shares of our common stock.
Current wording
•Returned $234.9 million to shareholders in the first nine months of 2026 by repurchasing 1,726,127 shares of our common stock.
Previous 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.
Current wording
RBR within our Consulting and Managed Services capability increased $31.2 million, or 12.2%, in the third quarter of 2026 to $287.5 million, compared to $256.3 million in the third quarter of 2025; and reflected strengthened demand in our Healthcare and Commercial segments. The increase includes $17.8 million of incremental RBR from our acquisitions of RelateCare and WP&C. The utilization rate within our Consulting capability increased to 76.2% in the third quarter of 2026, compared to 73.7% in the third quarter of 2025.
Previous 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.
Current wording
RBR within our Digital capability increased $18.9 million, or 10.8%, in the third quarter of 2026 to $195.0 million, compared to $176.0 million in the third quarter of 2025; and reflected an increase in RBR in our Education and Healthcare segments. The increase includes $3.3 million of incremental RBR from our acquisition of AXIOM. The utilization rate within our Digital capability increased to 81.2% in the third quarter of 2026, compared to 77.1% in the third quarter of 2025.
Previous 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.
Current wording
Our total number of revenue-generating professionals, excluding Managed Services professionals, slightly increased 1.1% to 5,324 as of September 30, 2026, compared to 5,265 as of September 30, 2025. The number of Managed Services professionals increased 103.7% to 4,216 as of September 30, 2026 from 2,070 as of September 30, 2025. This increase includes our acquisition of RelateCare in June 2026, which added approximately 1,100 Managed Services professionals at the time of acquisition. 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
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 wording
Adjusted EBITDA increased $9.9 million, or 14.7%, to $77.3 million, or 16.0% of RBR, for the third quarter of 2026, compared to $67.4 million, or 15.6% of RBR, for the same period last year.
Previous 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.
Current wording
In the first nine months of 2026, we deployed $234.9 million of capital to repurchase 1,726,127 shares of our common stock, representing 10.0% of our common stock outstanding as of December 31, 2025.
Previous wording
The number of revenue-generating professionals within this offering as of December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025 and December 31, 2025 was 23, 22, 23, 21 and 21, respectively. The prior period headcount reported by segment and by capability in the table above has been revised for consistent presentation. The prior period Education Managed Services capability headcount in footnote (5) below has been revised for consistent presentation.
Current wording
The number of revenue-generating professionals within this offering as of December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025 and December 31, 2025 was 23, 22, 23, 21 and 21, respectively. The prior period headcount reported by segment and by capability in the table above has been revised for consistent presentation. The prior period Education Managed Services capability headcount in footnote (4) below has been revised for consistent presentation.
Previous wording
RBR generated by this offering during the quarters ended March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025 was $1.8 million, $1.4 million, $1.8 million, and $1.6 million, respectively, and during the years ended December 31, 2024 and 2025 was $7.3 million and $6.6 million, respectively. This reclassification did not impact the total Education Consulting and Managed Services RBR reported for any period, and the prior period Education Managed Services capability RBR in footnote (6) below has been revised for consistent presentation.
Current wording
RBR generated by this offering during the quarters ended March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025 was $1.8 million, $1.4 million, $1.8 million, and $1.6 million, respectively, and during the years ended December 31, 2024 and 2025 was $7.3 million and $6.6 million, respectively. This reclassification did not impact the total Education Consulting and Managed Services RBR reported for any period, and the prior period Education Managed Services capability RBR in footnote (5) below has been revised for consistent presentation.
Previous wording
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 wording
The number of Managed Services professionals within our Healthcare segment was 4,091 and 1,977 as of September 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.
Previous 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.
Current wording
(5) Managed Services capability RBR within our Healthcare segment was $48.9 million and $25.0 million for the three months ended September 30, 2026 and 2025, respectively; and $109.4 million and $64.3 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Managed Services capability RBR within our Education segment was $7.4 million and $5.9 million for the three months ended September 30, 2026 and 2025, respectively; and $20.2 million and $17.4 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous 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.
Current wording
RBR increased $50.2 million, or 11.6%, to $482.5 million for the third quarter of 2026 from $432.4 million for the third 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 $21.1 million of incremental RBR from our acquisitions completed since June 30, 2025. Excluding the $21.1 million of incremental RBR from our acquisitions, RBR grew 6.7% organically. Additional information on our RBR by segment follows.
Previous wording
•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 wording
•Healthcare RBR increased $36.2 million, or 16.5%, which reflects $16.7 million of incremental RBR from our acquisitions of RelateCare and AXIOM, as well as strengthened demand for our healthcare managed services, performance improvement, and financial advisory solutions within our Consulting and Managed Services capability, and strengthened demand for our technology and analytics services within our Digital capability.
Previous wording
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 wording
The number of revenue-generating professionals, excluding Managed Services professionals, within our Healthcare segment grew 8.2% to 1,712 as of September 30, 2026, compared to 1,582 as of September 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 4,091 as of September 30, 2026 from 1,977 as of September 30, 2025. This increase includes our acquisition of RelateCare in the second quarter of 2026, which added approximately 1,100 Managed Services professionals.
Previous wording
•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 wording
•Education RBR increased $8.6 million, or 6.6%, driven by strengthened demand for our technology and analytics services and software products within our Digital capability and education managed services within our Consulting and Managed Services capability; partially offset by a decrease in RBR from our education and research consulting solution within our Consulting and Managed Services capability.
Previous 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.
Current wording
The number of revenue-generating professionals within our Education segment, excluding Managed Services professionals, decreased 12.0% to 1,044 as of September 30, 2026, compared to 1,187 as of September 30, 2025.
Previous 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.
Current wording
The number of revenue-generating professionals within our Commercial segment, the majority of which provide services across all of our industries, grew 2.9% to 2,568 as of September 30, 2026, compared to 2,496 as of September 30, 2025.
Previous wording
Operating expenses for the second quarter of 2026 increased $58.7 million, or 16.0%, over the second quarter of 2025.
Current wording
Operating expenses for the third quarter of 2026 increased $41.3 million, or 10.6%, over the third quarter of 2025.
Previous wording
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 wording
Direct costs increased $35.3 million, or 12.2%, to $324.1 million for the third quarter of 2026 from $288.8 million for the third quarter of 2025. The $35.3 million increase primarily related to a $35.7 million increase in compensation costs for our revenue-generating professionals and a $1.8 million increase in contractor expenses; partially offset by a $1.7 million decrease 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 $34.4 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 signing, retention and other bonus expense. As a percentage of RBR, direct costs increased to 67.2% during the third quarter of 2026, compared to 66.8% during the third quarter of 2025. This increase was primarily due to the increase in salaries and related expenses for our revenue-generating professionals, as a percentage of RBR; partially offset by decreases in performance bonus expense for our revenue-generating professionals and technology costs.
Previous 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.
Current wording
Selling, general and administrative expenses increased by $1.5 million, or 1.8%, to $82.8 million in the third quarter of 2026 from $81.3 million in the third quarter of 2025. The $1.5 million increase related to a $1.7 million increase in software and data hosting expenses, a $1.3 million increase in salaries and related expenses for our support personnel, and a $1.1 million increase in performance bonus expense; partially offset by a $2.9 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 a decrease 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 RBR, selling, general and administrative expenses decreased to 17.2% during the third quarter of 2026, compared to 18.8% during the third quarter of 2025, which was primarily driven by the decrease in our deferred compensation expense attributable to the change in market value of our deferred compensation liability and revenue growth that outpaced the increase in salaries and related expenses for our support personnel.
Previous wording
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 wording
Restructuring charges for the third quarter of 2026 were $1.2 million, compared to $3.5 million for the third quarter of 2025. The $1.2 million of restructuring charges recognized in the third quarter of 2026 included $0.6 million of severance-related expenses and $0.5 million of rent and related expenses, net of sublease income, for our previously vacated office spaces.
Previous 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.
Current wording
Depreciation and amortization expense increased $2.0 million, or 22.7%, to $10.7 million in the third quarter of 2026, compared to $8.7 million in the third quarter of 2025. The $2.0 million increase in depreciation and amortization expense was primarily attributable to increases in amortization of internally developed software and depreciation of leasehold improvements for certain office spaces.
Previous 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.
Current wording
Operating income increased $8.8 million, or 17.7%, to $58.8 million in the third quarter of 2026 from $50.0 million in the third quarter of 2025. Operating margin, which is defined as operating income expressed as a percentage of revenues before reimbursable expenses (RBR) was 12.2% for the three months ended September 30, 2026, compared to 11.6% for the three months ended September 30, 2025.
Previous wording
•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 wording
•Healthcare operating income increased $10.1 million, or 15.0%, 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; partially offset by a decrease in performance bonus expense. Healthcare operating margin decreased to 30.5% from 30.9%, primarily driven by the increase in salaries and related expenses for our revenue-generating professionals, as a percentage of RBR; partially offset by the decreases in performance bonus expense for our revenue-generating professionals and salaries and related expenses for our support personnel.
Previous wording
•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 wording
•Education operating income increased $7.0 million, or 21.0%, 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 annual salary increases that went into effect in the first quarter of 2026. Education operating margin increased to 29.1% from 25.7%, primarily driven by 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 technology costs.
Previous wording
•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 wording
•Commercial operating income decreased $1.3 million, or 9.9%, primarily due to an increase in compensation costs for our revenue-generating professionals; partially offset by the increase in RBR and a decrease in contractor expenses. The increase in compensation costs for our revenue-generating professionals was primarily driven by increases in performance bonus expense, annual salary increases that went into effect in the first quarter of 2026, signing, retention and other bonus expense, and share-based compensation expense. Commercial operating margin decreased to 13.9% from 16.4%, primarily driven by the increases in performance bonus expense, signing, retention and other bonus expense, and share-based compensation expense for our revenue-generating professionals, as percentages of RBR; partially offset 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.
Previous wording
•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 wording
•Unallocated corporate expenses increased $2.2 million, or 3.8%, primarily due to increases in compensation costs for our support personnel and software and data hosting expenses; partially offset by a decrease in legal expenses. The increase in compensation costs for our support personnel was primarily driven by annual salary increases that went into effect in the first quarter of 2026 and an increase in performance bonus expense; partially offset by a decrease in deferred compensation expense attributable to the change in the market value of our deferred compensation liability.
Previous 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.
Current wording
Interest expense, net of interest income increased $1.2 million to $12.2 million in the third quarter of 2026 from $11.0 million in the third quarter of 2025, which was primarily attributable to higher levels of borrowing under our senior secured credit facility during the third quarter of 2026 compared to the third 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
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 wording
Other income (expense), net totaled expense of $4.3 million in the third quarter of 2026, compared to income of $3.7 million in the third quarter of 2025. In the third quarter of 2026, we recognized a $5.9 million loss resulting from an increase to the credit allowance recognized on our convertible debt investment in a third-party and a $0.3 million loss on the market value of our investments that are used to fund our deferred compensation liability. These losses were partially offset by $1.1 million of foreign currency transaction gains and a $0.9 million realized gain related to the life insurance policies that are used to fund our deferred compensation liability. In the third quarter of 2025, we recognized a $2.6 million gain for the market value of our deferred compensation investments and $1.1 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.
Previous wording
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 wording
For the three months ended September 30, 2026, our effective tax rate was 32.9% as we recognized income tax expense of $13.9 million on income of $42.3 million. The effective tax rate of 32.9% 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.
Previous 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.
Current wording
Adjusted EBITDA increased $9.9 million, or 14.7%, to $77.3 million in the third quarter of 2026 from $67.4 million in the third quarter of 2025. The increase in adjusted EBITDA was primarily attributable to the increases in Healthcare and Education segment operating income, 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, and the decrease in Commercial segment operating income, excluding segment depreciation and amortization.
Previous 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.
Current wording
Adjusted net income increased $5.3 million, or 14.1%, to $42.6 million in the third quarter of 2026, compared to $37.4 million in the third 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, adjusted diluted earnings per share increased to $2.62 for the third quarter of 2026, compared to $2.10 for the third quarter of 2025.
Previous wording
Revenues before reimbursable expenses (RBR) by segment and capability for the six months ended June 30, 2026 and 2025 were as follows:
Current wording
Revenues before reimbursable expenses (RBR) by segment and capability for the nine months ended September 30, 2026 and 2025 were as follows:
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Current report — wording carried from elsewhere
Net cash provided by financing activities for the nine months ended September 30, 2025 was $68.2 million. The net borrowings of $253.3 million during the first nine months of 2025 were primarily used to fund our operations, including our annual performance bonus payments in the first quarter of 2025, and our programmatic business acquisitions. The aggregate borrowings and repayments during the first nine months of 2025 include the
Current report — wording carried from elsewhere
$400 million term loan proceeds received in the third quarter of 2025 under the Fourth Amended and Restated Credit Agreement (the “Amended
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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.