FTI Consulting Reports First Quarter 2026 Financial Results (Form 8-K)

FTI Consulting Reports First Quarter 2026 Financial Results

Washington, D.C., April 30, 2026 - FTI Consulting, Inc. (NYSE: FCN) today released financial results for the first quarter ended March 31, 2026.

First quarter 2026 revenues of $983.3 million increased $85.1 million, or 9.5%, compared to revenues of $898.3 million in the prior year quarter. The increase was primarily driven by revenue growth in the Corporate Finance, Strategic Communications and Technology segments, which was partially offset by lower revenues in the Economic Consulting segment. Excluding an estimated positive impact of foreign currency translation ("FX"), revenues increased $60.8 million, or 6.8%, compared to the prior year quarter. Net income of $57.6 million compared to $61.8 million in the prior year quarter. The decrease in net income was primarily due to higher direct costs and selling, general and administrative ("SG&A") expenses, which included legal settlement gains in the prior year quarter, as well as an increase in interest expense and a higher effective tax rate, which more than offset the increase in revenues. Adjusted EBITDA of $96.8 million, or 9.8% of revenues, compared to $115.2 million, or 12.8% of revenues, in the prior year quarter.

First quarter 2026 EPS of $1.90 compared to $1.74 in the prior year quarter. First quarter 2025 EPS included a $25.3 million special charge related to severance and other employee-related costs, which reduced EPS by $0.55. Excluding the $0.55 first quarter 2025 special charge, Adjusted EPS was $2.29 in the prior year quarter.

Steven H. Gunby, CEO and Chairman of FTI Consulting, commented, "We delivered strong revenue growth this quarter, which, notwithstanding a higher than expected tax rate and SG&A expenses, translated into solid bottom-line results. The continued powerful growth of our business, now over many years, underscores the importance of the expertise, judgment and credibility our experts offer our clients when they are facing their most complex and high-stakes challenges and opportunities, particularly in the complicated and disrupted world we face today."

Cash Position and Capital Allocation

Net cash used in operating activities of $310.0 million for the quarter ended March 31, 2026 compared to $465.2 million for the quarter ended March 31, 2025. The year-over-year decrease in net cash used in operating activities was primarily due to a decline in forgivable loan issuances, higher cash collections and lower income tax payments, which was partially offset by an increase in compensation payments.

During the quarter ended March 31, 2026, the Company repurchased 787,098 shares of its common stock at an average price per share of $161.11 for a total cost of $126.8 million. As of March 31, 2026, approximately $364.9 million remained available for common stock repurchases under the Company's stock repurchase program.

Cash and cash equivalents of $198.3 million at March 31, 2026 compared to $151.1 million at March 31, 2025 and $265.1 million at December 31, 2025. Total debt, net of cash, of $556.7 million at March 31, 2026 compared to $8.9 million at March 31, 2025 and $99.9 million at December 31, 2025. The sequential increase in total debt, net of cash, was primarily due to annual bonus payments and share repurchases.

First Quarter 2026 Segment Results

Corporate Finance

Revenues in the Corporate Finance segment increased $65.9 million, or 19.2%, to $409.5 million in the quarter compared to $343.6 million in the prior year quarter. The increase in revenues was primarily due to higher demand and realized bill rates for turnaround & restructuring, transactions and transformation services. Excluding an estimated positive impact of FX, revenues increased $57.4 million, or 16.7%. Segment operating income of $85.2 million compared to $41.0 million in the prior year quarter. Adjusted Segment EBITDA of $88.7 million, or 21.6% of segment revenues, compared to $55.9 million, or 16.3% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation.

Forensic and Litigation Consulting

Revenues in the Forensic and Litigation Consulting segment increased $2.3 million, or 1.2%, to $192.9 million in the quarter compared to $190.6 million in the prior year quarter. The increase in revenues was primarily due to higher realized bill rates for risk & investigations and construction solutions services, which was partially offset by lower demand for dispute advisory services. Excluding an estimated positive impact of FX, revenues decreased $1.7 million, or 0.9%. Segment operating income of $23.1 million compared to $30.1 million in the prior year quarter. Adjusted Segment EBITDA of $25.3 million, or 13.1% of segment revenues, compared to $37.5 million, or 19.7% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to higher compensation and SG&A expenses.

Economic Consulting

Revenues in the Economic Consulting segment decreased $4.2 million, or 2.3%, to $175.6 million in the quarter compared to $179.9 million in the prior year quarter. The decrease in revenues was primarily due to lower demand for non-merger and acquisition ("M&A")-related antitrust services, which was partially offset by higher demand for financial economics and M&A-related antitrust services, as well as higher realized bill rates. Excluding an estimated positive impact of FX, revenues decreased $10.3 million, or 5.7%. Segment operating loss of $7.3 million compared to segment operating income of $12.1 million in the prior year quarter. Adjusted Segment EBITDA of a loss of $5.9 million compared to $14.4 million, or 8.0% of segment revenues, in the prior year quarter. The decrease in Adjusted Segment EBITDA was primarily due to higher compensation, largely related to an increase in forgivable loan amortization, and lower revenues.

Technology

Revenues in the Technology segment increased $5.2 million, or 5.3%, to $102.3 million in the quarter compared to $97.2 million in the prior year quarter. The increase in revenues was primarily due to higher demand for litigation and information governance, privacy & security services, which was partially offset by lower demand for investigations and M&A-related "second request" services. Excluding an estimated positive impact of FX, revenues increased $2.7 million, or 2.8%. Segment operating income of $7.7 million compared to $6.6 million in the prior year quarter. Adjusted Segment EBITDA of $11.8 million, or 11.6% of segment revenues, compared to $11.6 million, or 11.9% of segment revenues, in the prior year quarter. The increase in

Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation.

Strategic Communications

Revenues in the Strategic Communications segment increased $16.0 million, or 18.4%, to $103.0 million in the quarter compared to $87.0 million in the prior year quarter. The increase in revenues was primarily due to higher demand for corporate reputation, public affairs and financial communications services. Excluding an estimated positive impact of FX, revenues increased $12.6 million, or 14.5%. Segment operating income of $20.8 million compared to $8.7 million in the prior year quarter. Adjusted Segment EBITDA of $21.9 million, or 21.3% of segment revenues, compared to $12.9 million, or 14.8% of segment revenues, in the prior year quarter. The increase in Adjusted Segment EBITDA was primarily due to higher revenues, which was partially offset by an increase in compensation, largely related to variable compensation.

2026 Guidance

The Company is reaffirming its full year 2026 revenue guidance range of between $3.940 billion and $4.100 billion. The Company is also reaffirming its full year 2026 EPS guidance range of between $8.90 and $9.60. The Company does not expect Adjusted EPS to differ from EPS.

First Quarter 2026 Conference Call

FTI Consulting will host a conference call for analysts and investors to discuss first quarter 2026 financial results at 9:00 a.m. Eastern Time on Thursday, April 30, 2026. The call can be accessed live and will be available for replay over the internet for 90 days by logging onto the Company's investor relations website here.

About FTI Consulting

FTI Consulting, Inc. is a leading global expert firm for organizations facing crisis and transformation, with more than 8,100 employees located in 32 countries and territories as of March 31, 2026. In certain jurisdictions, FTI Consulting's services are provided through distinct legal entities that are separately capitalized and independently managed. The Company generated $3.8 billion in revenues during fiscal year 2025. More information can be found at www.fticonsulting.com.

Non-GAAP Financial Measures

In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Certain of these financial measures are considered not in conformity with GAAP ("non-GAAP financial measures") under the United States Securities and Exchange Commission ("SEC") rules. Specifically, we have referred to the following non-GAAP financial measures:

We have included the definition of Segment Operating Income (Loss), which is a GAAP financial measure, below in order to more fully define the components of certain non-GAAP financial measures in the accompanying analysis of financial information. We define Segment Operating Income (Loss) as a segment's share of consolidated operating income. We use Segment Operating Income (Loss) for the purpose of

calculating Adjusted Segment EBITDA, which is a non-GAAP financial measure. We define Adjusted Segment EBITDA as Segment Operating Income (Loss) before depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges and goodwill impairment charges. We use Adjusted Segment EBITDA as a basis to internally evaluate the financial performance of our segments because we believe it reflects core operating performance and provides an indicator of the segment's ability to generate cash.

We define Adjusted EBITDA, which is a non-GAAP financial measure, as consolidated net income before income tax provision, other non-operating income (expense), depreciation, amortization of intangible assets, remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, gain or loss on sale of a business and losses on early extinguishment of debt. We define Adjusted EBITDA Margin, which is a non-GAAP financial measure, as Adjusted EBITDA as a percentage of total revenues. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with a more complete understanding of our operating results, including underlying trends. Many of our competitors use alternative measures of operating performance. Non-GAAP financial measures are used by investors, financial analysts, rating agencies and others to value and compare the financial performance of companies in our industry. Therefore, we also believe that our non-GAAP financial measures, considered along with corresponding GAAP financial measures, provide management and investors with useful supplemental information.

We define Adjusted Net Income and Adjusted Earnings per Diluted Share ("Adjusted EPS"), which are non-GAAP financial measures, as net income and EPS, respectively, excluding the impact of remeasurement of acquisition-related contingent consideration, special charges, goodwill impairment charges, the gain or loss on sale of a business and losses on early extinguishment of debt. We use Adjusted Net Income for the purpose of calculating Adjusted EPS. Management uses Adjusted EPS to assess total Company operating performance on a consistent basis. We believe that these non-GAAP financial measures, when considered together with our GAAP financial results and GAAP financial measures, provide management and investors with useful supplemental information on our business operating results, including underlying trends.

Non-GAAP financial measures are not defined in the same manner by all companies and may not be comparable with other similarly titled measures of other companies. Non-GAAP financial measures should be considered in addition to, but not as a substitute for or superior to, the information contained in our Consolidated Statements of Comprehensive Income. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.