Huron Consulting Group Inc (NASDAQ:HURN) closed its 2025 fiscal year with a fourth-quarter earnings report that presented a mixed financial picture. The global professional services firm delivered revenue and adjusted earnings per share that told diverging stories relative to Wall Street's expectations, leading to a muted initial market reaction with the stock showing no significant after-hours movement.
Quarterly Performance vs. Estimates
The company's results for the quarter ended December 31, 2025, highlighted a top-line miss but a stronger-than-expected bottom-line performance.
- Revenue: Huron reported revenues before reimbursable expenses (RBR) of $432.3 million, an 11.3% increase year-over-year. However, this figure fell short of analyst estimates, which had anticipated sales of approximately $442.3 million.
- Earnings Per Share: On a non-GAAP basis, which excludes items like acquisition costs and restructuring charges, adjusted diluted earnings per share came in at $2.17. This surpassed the consensus estimate of $1.99 by a notable 11.3%.
The divergence suggests that while organic growth was more modest, the company successfully expanded its profitability margins during the period. Management attributed the revenue growth to strength in Consulting and Managed Services within its Healthcare and Commercial segments, partially offset by softer demand for Digital services in Healthcare.
Market Reaction and Recent Performance
The immediate market response to the earnings release was neutral, with the stock showing no change in after-market trading. This lack of movement reflects the balancing act between the revenue miss and the earnings beat. The stock's performance in the broader context has been challenging, with shares down approximately 27% over the past month, indicating investor concerns or sector-wide pressures leading up to the report.
Full-Year 2025 Results and 2026 Outlook
For the full year 2025, Huron achieved record RBR of $1.66 billion, marking 12% growth over 2024 and representing a fifth consecutive year of growth. Adjusted EBITDA margin expanded to 14.3% of RBR, up from 13.5% in the prior year.
Looking ahead, the company provided guidance for 2026 that aligns closely with existing analyst expectations, offering a measure of stability.
- Revenue Guidance: Huron anticipates 2026 RBR in a range of $1.78 billion to $1.86 billion. The midpoint of this range, $1.82 billion, is very close to the current analyst sales estimate of $1.858 billion.
- EPS Guidance: The company's adjusted diluted EPS guidance of $8.35 to $9.15 brackets the current analyst consensus estimate for the full year.
This in-line outlook, coupled with the company's commentary on continued demand and margin discipline, appears to have provided investors with enough confidence to offset the quarterly revenue disappointment.
Key Takeaways from the Earnings Report
Beyond the headline numbers, several operational and strategic points from the press release stand out:
- Organic Growth: Excluding contributions from recent acquisitions and the divested Studer Education business, organic revenue grew 5.2% for the quarter and 7.1% for the full year.
- Margin Expansion: The company emphasized "continued trajectory of margin expansion," with the adjusted EBITDA margin for Q4 2025 reaching 15.7%, up 110 basis points from the prior year.
- Capital Return: Huron returned $166.2 million to shareholders in 2025 through share repurchases, buying back 6.6% of its shares outstanding.
- Segment Mix: The business remains diversified, with 2025 revenue split approximately 50% Healthcare, 30% Education, and 20% Commercial.
For a detailed breakdown of future earnings estimates and historical performance, you can review Huron's earnings and estimates page here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, nor does it recommend any investment action. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
