FTI Consulting, Inc. has reported financial results for the first quarter ended March 31, 2026, with revenues of $983.3 million, an increase of $85.1 million, or 9.5 percent, compared to $898.3 million in the prior year quarter.
The growth was driven by higher revenues in the Corporate Finance, Strategic Communications and Technology segments, partially offset by a decline in the Economic Consulting segment. Excluding an estimated positive impact of foreign currency translation, revenues increased $60.8 million, or 6.8 percent year on year.
Net income for the quarter stood at $57.6 million, compared to $61.8 million in the prior year quarter. The decline was attributed to higher direct costs and selling, general and administrative expenses, which included legal settlement gains in the prior year period, along with increased interest expense and a higher effective tax rate.
Adjusted EBITDA was $96.8 million, representing 9.8 percent of revenues, compared to $115.2 million, or 12.8 percent of revenues, in the prior year quarter.
Earnings per share for Q1 2026 came in at $1.90, compared to $1.74 in Q1 2025. The prior year quarter included a $25.3 million special charge related to severance and employee-related costs, reducing EPS by $0.55. Excluding this impact, adjusted EPS in Q1 2025 was $2.29.
Commenting on the performance, Steven H. Gunby, CEO and Chairman, said the company delivered strong revenue growth, which translated into solid bottom-line results despite higher tax rates and SG&A expenses.
Cash and capital position
Net cash used in operating activities was $310.0 million for the quarter, compared to $465.2 million in the prior year period. The decrease was primarily due to lower forgivable loan issuances, higher cash collections and reduced income tax payments, partially offset by increased compensation payments.
During the quarter, the company repurchased 787,098 shares at an average price of $161.11 per share, for a total of $126.8 million. As of March 31, 2026, $364.9 million remained available under the stock repurchase program.
Cash and cash equivalents stood at $198.3 million as of March 31, 2026, compared to $151.1 million a year earlier and $265.1 million as of December 31, 2025. Total debt, net of cash, was $556.7 million, compared to $8.9 million in the prior year quarter and $99.9 million at the end of 2025.
Segment performance
Corporate Finance revenues rose 19.2 percent to $409.5 million, driven by demand for turnaround and restructuring, transactions and transformation services. Segment operating income increased to $85.2 million, while adjusted segment EBITDA was $88.7 million.
Forensic and Litigation Consulting revenues increased 1.2 percent to $192.9 million. Segment operating income declined to $23.1 million, and adjusted segment EBITDA was $25.3 million.
Economic Consulting revenues declined 2.3 percent to $175.6 million. The segment reported an operating loss of $7.3 million, compared to operating income in the prior year. Adjusted segment EBITDA was a loss of $5.9 million.
Technology revenues increased 5.3 percent to $102.3 million. Segment operating income rose to $7.7 million, while adjusted segment EBITDA was $11.8 million.
Strategic Communications revenues increased 18.4 percent to $103.0 million. Segment operating income rose to $20.8 million, and adjusted segment EBITDA was $21.9 million.
Outlook
FTI Consulting has reaffirmed its full-year 2026 revenue guidance in the range of $3.940 billion to $4.100 billion. The company also maintained its EPS guidance between $8.90 and $9.60, with no expected difference between EPS and adjusted EPS.
No fireworks here. Just a company growing on one side, bleeding a little on the other, and calling it balance. That’s corporate poetry for you.
