FTI Consulting, Inc. (NYSE: FCN) has reported its financial results for the first quarter of 2025, with revenues of $898.3 million, indicating a 3% decrease compared to the prior year quarter's $928.6 million.
The net income for the first quarter of 2025 was $61.8 million, down from $80.0 million in the prior year quarter, primarily due to lower revenues and a $25.3 million special charge related to severance and other employee-related costs. Adjusted EBITDA was $115.2 million, or 12.8% of revenues, compared to $111.1 million, or 12.0% of revenues, in the prior year quarter.
Earnings per diluted share (EPS) for the first quarter of 2025 were $1.74, down from $2.23 in the prior year quarter. However, adjusted EPS for the first quarter of 2025 was $2.29, compared to $2.23 in the prior year quarter.
FTI Consulting also announced a $400.0 million increase in share repurchase authorization. During the first quarter of 2025, the company repurchased 1,126,995 shares of its common stock at an average price per share of $165.15 for a total cost of $186.1 million.
Cash and cash equivalents were reported at $151.1 million at March 31, 2025, compared to $244.0 million at March 31, 2024, and $660.5 million at December 31, 2024. Total debt, net of cash, was $8.9 million at March 31, 2025, compared to $(39.0) million at March 31, 2024, and $(660.5) million at December 31, 2024.
In terms of segment results, the Corporate Finance & Restructuring segment saw a decrease in revenues, down 6.1% to $343.6 million, with segment operating income of $41.0 million, compared to $71.9 million in the prior year quarter. The Forensic and Litigation Consulting segment's revenues increased by 8.3% to $190.6 million, while the Economic Consulting segment's revenues decreased by 12.1% to $179.9 million. The Technology segment's revenues decreased by 3.5% to $97.2 million, and the Strategic Communications segment's revenues increased by 7.2% to $87.0 million.
FTI Consulting's President and CEO, Steven H. Gunby, acknowledged the challenging times for clients and highlighted the company's commitment to providing support, citing the solid results as a reflection of clients turning to the company.
The company's special charge of $25.3 million in the first quarter of 2025 was related to staffing alignment, which is expected to result in annualized cost savings of approximately $85 million of salary* and benefits-related compensation costs.
FTI Consulting will host a conference call for analysts and investors to discuss the first quarter 2025 financial results.
FTI Consulting, Inc. is a leading global expert firm with over 8,100 employees located in 33 countries and territories as of March 31, 2025, generating $3.70 billion in revenues during fiscal year 2024.
The company also provided non-GAAP financial measures, including adjusted segment EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted earnings per diluted share, to provide a more complete understanding of its operating results, including underlying trends. As a result of these announcements, the company's shares have moved 0.5% on the market, and are now trading at a price of $162.68. Check out the company's full 8-K submission here.
